Crisil assigns P1-plus rating to Indal's Rs 150cr debt plan
Our Banking Bureau
MUMBAI, January 13: The Credit Rating Information Services of India Ltd (Crisil) has assigned a P1+ rating to the Rs 150-crore commercial paper (CP) programme of Indian Aluminium Company Ltd (Indal). The rating agency has also reaffirmed the Triple-A ratings assigned to the fixed deposit (FD) programmes of Indal and India Nippon Electricals Ltd.The ratings assigned to Indal reflect the company's strong position in semi-fabricated aluminium business, comfortable position of its chemical business, its conservative financing policy and comfortable liquidity position. These strengths are however tempered by the relatively weak metal linkage of the company. Crisil has assigned P1 ratings to the CP programmes of Aarti Industries and Ion Exchange (India) Ltd. While Aarti Industries will raise Rs 6 crore, Ion Exchange proposes to raise Rs 15 crore. The rating agency has also assigned a AA- rating to the Rs 25 crore non-convertible debenture (NCD) programme of Purolator India Ltd. The FD programme of the
company has been assigned a Double-A rating. The rating indicates that the degree of safety regarding the timely payment of interest and principal on the instrument is high. The ratings reflect Purolator's strong market and operational position in its existing business lines and average financial risk profile offset by a significant increase in the company's proposed capital expenditure and investments which are to be largely funded through debt. Crisil has reaffirmed the A ratings assigned to the two NCD programmes of Bharat Gears amounting to Rs 11.5 crore.It has also reaffirmed the A rating assigned to the FD programme of Caprihans India Ltd. The Double-A rating assigned to the FD programme of Premier Instruments & Controls Ltd (Pricol) has also been reaffirmed by Crisil. The rating agency has also reaffirmed the A rating assigned to the FD programme of Simpson and General Finance Company Ltd.The rating agency has also reaffirmed the P1+ rating assigned to the certificate of deposit programme of State
Bank of Indore. The Double-A rating of the bank's FD programme has also been reaffirmed. The rating factors State bank of Indore's position as a strong nationalised one, a fairly steady investment portfolio, average capital adequacy position, access to call money market. This is offset by a relatively weak asset quality with a modest client profile, relatively small deposit base, regional nature of the bank and traditional tenure mismatch in the banking system.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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