Fitch Ratings has affirmed India-based agricultural processing and trading company REI Agro (REI) long-term issuer default Rating (IDR) at 'B+' and revised the outlook to stable from positive.

The agency also affirmed the company's senior unsecured rating at 'B+'. 

At the same time Fitch has withdrawn REI's ratings because the agency believes the ratings are no longer relevant to its coverage. Fitch will no longer provide ratings or analytical coverage for REI.

The outlook revision reflects Fitch's expectations that REI is unlikely to maintain interest coverage (defined as EBITDA/gross interest expense) above the 2x threshold in the medium term. This is primarily because REI was unable to issue a proposed US dollar bond in early 2013, it faces the impending payment of most of its outstanding foreign currency debt in November 2014, and it had weaker EBITDA margins because the sales mix shifted in favour of its trading business.

Shares of the company declined Rs 0.17, or 2.86%, to settle at Rs 5.78. The total volume of shares traded was 1,306,936 at the BSE (Tuesday).