Fitch affirms Blue Dart's Rs 30 cr CP programme rating

New Delhi, Aug 14 (UNI) Credit rating agency Fitch today affirmed the 'F1+' short-term rating of Blue Dart Express Ltd's commercial paper (CP)/short-term debt programme for an amount of Rs 30 crore.

The rating factors in the healthy net cash accruals generated by the company in the last two years, leading to the reduction in debt and the consistent improvement in debt protection measures as on December 31, 2005.

The acquisition of a controlling 81.03 per cent stake by Deutsche Post AG through DHL Singapore Pte Ltd during financial year 2004-05 is expected to provide Blue Dart with operational synergies.

The rating reflects Blue Dart's position as one of the leading integrated service provider in India with a market share of 39 per cent.

Key rating risks include the vulnerability of Blue Dart's operating performance to economic downturns due to the high correlation between economic growth and the air cargo industry, high fixed-cost base and volatility in turbine fuel prices.

''The recent proposal of the Department of Posts banning private couriers from taking consignment weighing up to 300 grammes, if implemented, could negatively affect the business of private couriers including Blue Dart,'' the rating agency said.

Blue Dart recently inducted two Boeing 757-200 freighters into its existing fleet on a lease basis as well as changed its financial year to end in December rather than in March in order to align it with that of DPWN.

UNI PV RA DS1640