Fitch upgrades Ashok Leyland's rating outlook to 'stable'
Date: 25-08-2010Global ratings agency Fitch has upgraded the outlook of the Hinduja group auto firm Ashok Leyland to 'stable' from 'negative' on the back of the firm's improved performance in the domestic market.
Fitch has also reaffirmed Ashok Leyland's national long-term rating at 'AA-(ind)'-- which signifies 'expectations of very low default risk relative to other issuers' -- as also the company's Rs 75 crore long-term debenture programme.
The revision in outlook is underpinned by the significant improvement in Ashok Leyland's domestic sales volumes. Ashok Leyland's domestic sales in the medium and heavy commercial vehicles (M&HCV) segment went up by 22 per cent in 2009-10 to 57,139 units. During the first quarter of the current fiscal, the company has registered domestic sale of 19,243 units.crackcrack