Fitch rates Gujarat State Fertilisers AA(ind)

Fitch Ratings said it assigned Gujarat State Fertilisers & Chemicals Ltd. a national long-term rating of AA(ind) with a stable outlook, along with an AA(ind)/F1+(ind) to its Rs.7.4 billion sanctioned fund-based working capital bank facilities, Rs.3.5 billion sanctioned non-fund based facilities and an F1+(ind) ratings to its Rs.2.1 billion short-term debt program and Rs.2 billion commercial paper program.

The ratings reflect the company's integrated operations and low off-take risks in both the fertilizers and chemicals segments, on account of a favorable demand supply scenario and tariff protections available to the domestic industry, Fitch said.

The ratings are moderated by the inherent cyclicality in industrial products like caprolactam and melamine, which are undergoing a weak business cycle internationally, the agency said.

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