Fitch rates M.K. Patel B+(ind)

Fitch Ratings said it assigned M.K. Patel Exim Pvt. Ltd. a national long-term rating of B+(ind), along with its Rs. 80 million fund-based limits a B+(ind) rating and its Rs. 600 million non-fund based limits an F4(ind) rating.

The outlook is stable.

The ratings factor in its low operating margins of 0.75% to 2% during 2006 through 2010, which are a result of the trading nature of its business, Fitch said.

Given the low profitability and large unsecured loans, its debt protection measures are poor, the agency said.

The ratings derive support from the sponsors' long experience in the timber trading business, reflected in a continuous increase in sales and strong client relations, Fitch said, as well as negligible long-term debt obligations with bankers.

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