Mumbai, Dec 16: The Credit Rating Information Services of India Ltd (Crisil) has downgraded two debt programmes of Bombay Dyeing amounting to Rs 92.24 crore. The non-convertible debenture (NCD) and secured-premium notes have been downgraded to AA from AA+. Crisil has assigned a AA rating to the Rs 150- crore NCD programme of Bombay Dyeing to be raised by it in tranches.

Crisil has assigned AAA ratings to the Rs 500-crore non-convertible bonds programme of Tata Electric Companies (TEC) and the Rs 100-crore debt programme of Videsh Sanchar Nigam Ltd (VSNL). The rating indicates that the degree of safety regarding the timely payment of interest and principal on the instrument is the highest. Crisil has also reaffirmed the AAA rating assigned to the Rs 49-crore NCD programme of TEC.

The revised ratings of Bombay Dyeing reflect the challenges faced by the company due to the decline in profitability of the dimethyl terephthalate (DMT) division. A combination of factors such as the unfavourable international demand-supply scenario for fibre intermediates, increasing susceptibility to price movements of DMT and paraxylene, and decline in duty protection to the domestic industry has affected the division's performance. The rating agency has also downgraded the fixed-deposit programmes of Autolite (India) Ltd, Autopal Industries Ltd and SMIFS Capital Markets Ltd. It has assigned a AA- rating for the NCD programme of Blow Plast Ltd and a P1+ rating for the company's Rs 10-crore commercial-paper (CP) programme. P1+ ratings have also been assigned to the Rs 150-crore CP programme of Sterlite Industries and the Rs 25-crore CP programme of VIP Industries.

A P1 rating has been assigned to the Rs 50-crore CP programme of Jindal Iron & Steel Company Ltd (Jisco), which indicates that the degree of safety regarding the timely payment of financial obligations on the instrument is very strong. The rating factors Jisco's considerable strengths in its GP/GC business, arising from having a good domestic share, integrated nature of operations with the largest installed capacity in the industry, a well-developed sales network and an established brand.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.