MUMBAI, Nov 4: The Credit Rating Information Services of India Ltd (Crisil) on Tuesday downgraded the debt programmes of Mafatlal Finance Company and DSJ Finance Corporation.

This is the second round of downgrading of the non-banking finance companies by the premier rating agency. Last month, Crisil downgraded debt instruments of 14 top notch NPFCs.

The rating of DSJ Finance Corporation's fixed deposit (FD) programme has been downgraded to FC from FB. The revised rating indicates that the degree of safety regarding the timely payment of interest and principal on the instrument is doubtful.The rating agency has downgraded the FD programme of Mafatlal Finance from FAA- to FA+ and the rating of the non-banking finance company's Rs 90 crore non-convertible debenture issue has been scaled down to A from A+. Mafatlal Finance's Rs 30 crore preference share issue has also been downgraded to PFA from PFA+.

The ratings revision of Mafatlal finance factors the decline in the company's profitability, asset quality and the relatively high exposure to the riskier premium cars segment. The revised ratings also take into account pressures on the asset liability matches.

Meanwhile, Crisil has assigned P1+ ratings to the commercial paper (CP) programmes of ICI India, Excel Industries and Ipca Laboratories. The three companies propose to raise Rs 106 crore through the commercial paper route. The ratings indicate that the degree of safety regarding timely payment on the instruments are very strong.

Crisil has assigned a AA-rating to the Rs 40 crore NCD programme of Excel Industries and has reaffirmed the FAA rating assigned to its FD programme. The ratings incorporate Excel's strengths arising out of large experience in the agro-chemical business with a diversified product profile, strong brand image, large marketing network and strength in process technology.

Three NCD programmes of Atul Ltd, a company engaged in the manufacture of dyes and aromatic chemicals, has also been downgraded by Crisil. The three issues, amounting to Rs 44.75 crore, have all been downgraded to AA- from A.

The revised rating is on account of the fall in anticipated earnings from operations, high debt level resulting in interest burden and increasing debtor levels resulting in strained working capital position.The Rs 12 crore NCD issue of Jaysynth Dyechem Ltd has also been downgraded to A from A+. The revision in the rating factors the downtrend in the dyes industry and a deterioration in Jaysynth's capital structure.

Crisil has reaffirmed the A- rating assigned to the Rs 12 crore NCD programme of Kamat Hotels while a fresh Rs 10 crore NCD issue has also been assigned an A- rating. The company intends to use the proceeds of the proposed Rs 10 crore debenture issue to partially substitute the outstanding Rs 12 crore debenture issue.The agency has assigned an AA rating to the Rs 10 crore NCD programme of NIIT Ltd and has also reaffirmed the FAA+ rating assigned to the company's FD programme. The ratings reflect NIIT's position as a major player in the information technology services industry and its well entrenched brandname.

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