Fitch rates Cosmic Ferro Alloys debt BB+(ind)

Fitch Ratings said it assigned a BB+(ind) national long-term rating to Cosmic Ferro Alloys Ltd., along with a BB+(ind) rating on its Rs.207.7 million outstanding long-term debt, BB+(ind) on its Rs.328.5 million cash credit limit and F4(ind) rating on its Rs.794.0 million non fund-based facilities.

The outlook is stable.

The rating reflects the small size of the company's operations and likely impact on revenues and profitability from a demand slowdown in the steel sector, Fitch said.

Fitch said it believes the decline in demand for ferro alloys coupled with inventory de-stocking by bigger manufacturers are likely to pose serious challenges for smaller manufacturers like Cosmic Ferro Alloys, who have less than 2% market share in the ferro alloy industry.

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