Fitch places Richa Industries on rating watch negative

Fitch Ratings has placed India-based Richa Industries Limited's National Long-Term rating of 'Fitch BBB-(ind)' on Rating Watch Negative (RWN).

The RWN is caused by continuous delays in resolving Richa's disputed forex derivative transaction with ICICI Bank. The company has reported the forex derivative as a contingent liability of INR176m in its FY11 financials.
Fitch expects to resolve the RWN by end-August 2012, subject to the final resolution of the derivative loss dispute. The RWN indicates that the ratings may be downgraded or remain at the current level.

Richa's following ratings have also been placed on RWN:

• INR1,060m fund-based limits: 'Fitch BBB-(ind)'/'Fitch A3(ind)' placed on RWN
• INR290m non-fund-based limits: 'Fitch BBB-(ind)'/'Fitch A3(ind)' placed on RWN
• INR825.9m term loans: 'Fitch BBB-(ind)' placed on RWN

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