TEXT-Fitch affirms BIL enhanced loans at 'A-(ind)'/'F2+(ind)'

(The following statement was released by the rating agency)

May 25 - Fitch Ratings has today affirmed India's Bhartiya International Limited's (BHAI.BO: Quote, Profile, Research) (BIL) National Long-term rating at 'A-(ind)'. Simultaneously, the agency has assigned ratings of 'A-(ind)' to BIL's outstanding long-term bank loans of INR85.5m and 'A-(ind)'/'F2+(ind)' ratings to its INR115.4m standby letters of credit issued by BIL in favour of its subsidiaries. Meanwhile, Fitch has also affirmed the ratings of BIL's enhanced bank loan facilities, as follows:

- Fund based working capital limits enhanced to INR748.5m from INR608.3m: 'A-(ind)'/'F2+(ind)'; and

- Non-fund based working capital limits of INR243.5m: 'A-(ind)'/'F2+(ind)'.

This rating action commentary updates the same published by the agency on 17 March 2009.

BIL is a fashion-wear leather products exporter since 1989, with production facilities in Bangalore and Chennai. The consolidated revenues for the company for FY08 were INR1,529.6m, while its EBITDA was INR144.2m. Net debt at end-March 2008 was INR401.7m, translating into net debt/EBITDA ratio of 2.8x. During the nine months period ending December 2008, BIL reported standalone revenues of INR1197m, EBITDA of INR157.1m with a net income of INR44.3m. For FY10, BIL has planned a new debt funded capex of INR100m for a design studio and sample cutting house in Delhi.