MUMBAI, Feb 4: Icra has downgraded Pennar Aluminium Company's NCD programme from LBB to LD, indicating default. "The revised rating indicates that the company is either in default in payment of interest and/or principal as per terms or expected to default," an Icra press release said."Liquidity is likely only on liquidation or reorganisation," the release further stated. Palco is an Hyderabad-based company that manufactures aluminium strips and conductors. The company's performance was affected on account of sluggish demand and sharp reduction in import duties resulting in severe competition from imports.
Other ratings done by Icra this week include the Rs 300-crore 12th `B' series tax-free bond issue of Indian Railway Finance Corporation Ltd (IRFC), which has been assigned the highest rating of LAAA, and the Rs 50-crore commercial paper programme and the Rs 20-crore NCD programme of Balarampur Chinni Mills, accorded A1+ and MAA- respectively, indicating high safety.IRFC provides funding by way of leasefinancing the rolling stock -- diesel and electric locomotives, carriages and wagons -- to Indian Railways. Balarampur Chinni is one of the largest and most profitable sugar mills in the country and has witnessed phenomenal growth in capacity, production and sales over the past three years.
Nicco Uco Financial Services Ltd's NCD programme has been assigned LAA rating by ICRA, indicating high safety, while its FD programme has been downgraded to MAA in view of the fall in profitability and build-up of NPAs, but still indicating high safety. The agency has retained the `A1' rating given to the company's CP programme.The rating reflects NUFSL's conservative business practices, prudent accounting policies that have led to build-up of reserves, excellent tenure matching of assets and liabilities, the Icra release stated.
Icra has also assigned A1+ rating to the CP programme and LA+ to the NCD programme of S Kumar's Synfab Ltd, indicating high safety.Meanwhile, Credit Rating Information Services of India Ltd(Crisil) has assigned triple-A rating to the Rs 85-crore bond issue from National Capital Region Planning Board. The rating is based on the credit enhancement mechanism in the form of a letter of comfort from the ministry of urban affairs and employment, government of India and the repayment mechanism for the timely servicing of financial obligations on the rated instrument. NCRPB was set up under a special Act encated by the parliament with concurrance of the state legislatures of Haryana, Rajasthan and Uttar Pradesh, with the objective of reducing the pressure of population on Delhi and to achieve a balanced and harmonious development of National Capital region.
Crisil has also downgraded the AA+ rating given to the Rs 38.4-crore NCD programme to AA and the fixed deposit programme from FAA+ to FAA of United Phospherous Ltd. It has also assigned the revised rating to the new Rs 40-crore NCD programme from the company and retained the P1+ rating given to the CP programme of the company.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
