Fitch rates Bajaj Hindusthan Sugar debt BBB-(ind)

Fitch Ratings said it assigned Bajaj Hindusthan Sugar Industries Ltd. a national issuer rating of BBB-(ind), along with a national long-term rating of BBB-(ind) to its long-term outstanding debt of Rs.150 million and a BBB-(ind) to its fund-based cash credit limits of Rs.7,050 million and ratings of F3(ind) to its short-term non fund-based limits of Rs.1,005 million.

The outlook is stable.

The ratings reflect the support extended by Bajaj Hindusthan Ltd. (rated A+(ind) with negative view) in the form of a 75% equity stake, a loan of Rs.3,500 million and guarantees to Bajaj Hindusthan Sugar, Fitch said.

The ratings also factor in its completed capital expenditure plans, bringing its total capacity to 40,000 tons crushed per day for sugar season 2008 compared to 6000 tons crushed per day for the 2007 season, the agency said. Fitch said that any significant dilution in Bajaj Hindusthan's stake in Bajaj Hindusthan Sugar would act as a negative rating trigger.

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