Fitch downgrades Precision

Fitch Ratings said it downgraded Precision Automation and Robotics India Ltd.'s national long-term rating to BBB+(ind) from A-(ind), along with its Rs. 274.9 million long-term debt to BBB+(ind) from A-(ind), Rs. 572.4 million fund-based working capital limits to BBB+(ind) from A-(ind), Rs. 1.01 billion non-fund based working capital limits to BBB+(ind)/F2+(ind) from A-(ind)/F1(ind) and Rs. 250 million commercial paper program to F2+(ind) from F1(ind).

The outlook is stable.

The downgrades reflect a consistent decline in the company's operating profitability margins due to increased employee and field commissioning costs, which along with its high working capital debt levels led to a significant increase in its net financial leverage, Fitch said.

The company is vulnerable to volatility in operating costs due to its long delivery schedule and the fixed-price nature of its projects, the agency said.

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