Fitch upgrades Kirloskar Oil Engines to 'F1+(ind)'

Our Corporate Bureau
05 February 2005

Rs250 million Commercial Paper programme

F1+(ind) (Upgraded)

Fitch Ratings has upgraded the rating of Kirloskar Oil Engines Ltd's (KOEL) commercial paper programme to 'F1+(ind)' from 'F1(ind)'.

KOEL derives its rating from its strong brand and leadership position in many products; it is the market leader in small and medium engines and has a strong marketing and distribution network across India. KOEL makes the widest range of engines in the country and is upgrading its product standards to target exports in a bigger way.

Though exports accounted for only about 6 per cent of its sales in FY04, these are likely to increase significantly over the next few years. KOEL is likely to maintain its strong operating performance owing to a positive outlook for the power generation and construction industry, from which KOEL derives substantial orders for its engines.