Mumbai, July 15: Credit Rating & Information Services of India Ltd (Crisil) has downgraded the fixed deposit programmes of Arihant Credit Capital Ltd and Nucleus Securities Ltd. Arihant's FD programme has been downgraded from "FA-" to "FB+" while Nucleus Securities' FD programme has been downgraded from "FA" to "FA-".

While Nucleus' new rating indicates that the degree of safety regarding the timely payment of interest and principal is satisfactory, the revised rating of Arihant indicates inadequate safety with regard to the timely repayment of interest and principal.

The revised rating reflects an adverse change in Arihant Credit's overall risk profile arising out of an inherently risky exposure in the short-term inter-corporate deposit market and a substantial erosion in the stock market portfolio of the company. According to Crisil, "Arihant Credit's profitability performance and cash flow position is likely to get adversely impacted".

The rating of Nucleus Securities factors in the below average performance of the company's other businesses which has led to a small negative accretion to reserves for the second successive year in the 9 months of 1996-97.

Nucleus is engaged in full-fledged money changing, corporate debt syndication, issue management, underwriting and portfolio management and investment advisory services. Crisil has, meanwhile, removed National Fertilisers Ltd from "rating watch" for its Rs 1,000 crore bond issue and has also assigned a "P1+" rating to the Rs 50 crore short term debt programme of the company. The bond issue of the company has been assigned a "AA+" rating.

Crisil's decision to remove the company from rating watch stems from the comfort provided with the installation of a new top management set-up within the company and the successful implementation of the Vijaipur expansion project.

The premier rating agency has upgraded the Rs 8.30 crore partly convertible debenture programme of Sintex Industries Ltd from "A-" to "A" and has assigned a "P1+" rating to the Rs 10 crore commercial paper programme of the company. Crisil has also upgraded the company's fixed deposit programme from "FA" to "FA+".

TVS Electronics has been assigned a "P2+" rating for its Rs 10 crore commercial paper programme which indicates that the timely payment on the instrument is very strong. Being part of the TVS group of companies and a subsidiary of Sundaram Clayton Ltd, the company enjoys financial and managerial support from its parent.

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