TEXT-Fitch places Polycab Wires on rating watch negative

(The following statement was released by the ratings agency)

May 25 - Fitch Ratings has today placed Polycab Wires Pvt Ltd.'s (PWPL) National Long-term rating of 'A+(ind)' on Rating Watch Negative (RWN). The following instruments have also been placed on RWN:

- 'A+(ind)' rating of its cash credit facilities totalling INR500m,

- 'A+(ind)'/'F1(ind)' rating of its fund-based working capital facilities totalling 5.1bn, and

- 'F1(ind)' rating of its INR9.14bn non fund-based working capital lines.

- 'F1(ind)' ratings of its INR 500m CP Programme (to be carved out of fund-based working capital limits)

The RWN reflects the lack of clarity with regard to PWPL's outstanding derivative contracts, and the consequent impact on its credit profile during FY09. Fitch currently awaits information and discussions with the management team with regard to the same, following which the RWN will be resolved. The RWN indicates that the ratings may be downgraded or affirmed.