Fitch Ratings has affirmed Georgian auto parts company Tegeta Motors LLC’s Long-Term Issuer Default Rating (IDR) at ‘B-‘ with Stable Outlook. The rating has simultaneously been withdrawn.
The rating of Tegeta Motors is constrained by its small scale, lack of geographical diversification, negative free cash flow (FCF) generation, and tight liquidity position. Positively the company benefits from its leading market position in the local market and a significant proportion of aftermarket-driven non-cyclical revenue that helps to support profitability even in times of crisis.
The ratings were withdrawn with the following reason: For Commercial Purposes.