Fitch rates CG Ispat BB+(ind)

Fitch Rating said it assigned CG Ispat Pvt. Ltd. a national long-term rating of BB+(ind), along with a BB+(ind) rating on its long-term loans of Rs. 272.2 million; BB+(ind) rating on its fund-based working capital limits of Rs. 220 million; and an F4 rating on its non-fund based limits of Rs. 100 million.

The outlook is stable.

The ratings reflect the small size of the company's operations, with under 1% share of the domestic market for structural steel products, Fitch said.

The ratings also consider a lack of track record of successful operations particularly in view of the substantial under utilization of its plant capacity during 2007 and 2008, the agency said, and limited control on prices of raw material and end products.

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