Mumbai: Fitch Ratings has placed Hindalco Industries'' National Long-term AAA rating and its ''AAA'' rated Rs50 crore non-convertible debenture programme on Rating Watch Negative, while affirming its National Short-term rating at F1+.

Fitch Ratings has simultaneously placed the Issuer Default Ratings (IDR) of ''B'' for Novelis Inc and its subsidiary Novelis Corp on Rating Watch Negative.

Earlier, Crisil placed its rating on Hindalco Industries'' outstanding long-term rating of AAA/Stable on "Rating watch with negative implications" for its non-convertible debentures programme of Rs1,594 crore. Crisil has also reaffirmed P1+ rating for Rs25 crore short term debt programs.

The rating agencies feel the proposed acquisition cost is significantly larger than the company''s net worth of about Rs9,500 crore (as on March 31, 2006). The company is proposing to fund this acquisition through debt which will have an adverse impact on the capital structure of the firm.