MUMBAI, February 4: ICRA, a leading rating agency, has downgraded Pennar Aluminium Company's non-convertible debenture (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. Liquidity is likely only on liquidation or reorganisation,'' ICRA said.Pennar Aluminium is a Hyderabad-based company which manufactures aluminium strips and conductors. The company's performance was affected due to the sluggish demand and sharp reduction in import duties resulting in severe competition from imports.
Crisil, another rating agency, downgraded the Rs 38.4 crore NCD programme of United Phosphorous Ltd from `AA+' to `AA' and the fixed deposit programme from `FAA+' to `FAA'. 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.
Among the other ratings done by ICRA thisweek are 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 lease financing the rolling stock viz. 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 phenomonal growth in capacity, production and sales over the past three years.
Nicco Uco Financial Services Ltd's (Nufsl) 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.
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