Icra downgrades fixed deposit programme of DCM Financial
Our Banking Bureau
MUMBAI, January 22: ICRA has downgraded the fixed deposit programme of DCM Financial Services Ltd from MB to MD, indicating default. "The revised rating indicates either already in default or expected to default," an ICRA press release said.The downgrading has been effected because DFSL liquidity has been under considerable strain on account of a tenure mismatch in its asset-liability portfolio. The mismatch has resulted in delays in meeting its obligations, the release said. The sale of real estate, which was earlier expected to release funds for regularising the overdue repayments, has not materialised and is not expected in the near future due to the depressed real estate market, the release said. ICRA has assigned the highest safety rating of A1 to the Rs 5-crore commercial paper programme of Birla Yamaha Ltd (BYL). BYL, promoted by the Yash Birla group and Yamaha Motor Corporation, manufactures and markets portable generators. The rating takes into account the improved performance and reduced debtlevels of the company, which has led to comfortable interest and debt coverage ratio, the release said.Credit Rating Information Services of India Ltd (Crisil), the biggest credit rating agency in India, has rated one fixed deposit, commercial paper and debenture issues each during the last week. It has reaffirmed the FA- rating assigned to the fixed deposit programme of AB Housing Finance Ltd. "The rating indicates that the degree of safety regarding the timely payment of interest and principal in adequate," a Crisil press release stated. The Rs 15-crore CP programme of Godfrey Phillips India Ltd has been enhanced to Rs 25 crore and assigned the highest rating of P1+ by Crisil. The rating has factored in the association of the company with Phillip Morrison Inc of the US. The A+ rating given to the non-convertible portion of the Rs 60.7-crore partly convertible debenture issue of Nagarjuna Fertilisers and Chemicals Ltd has been reaffirmed by Crisil, indicating timely payment of interest and
principal. "The assigned rating is reflective of the strong operating efficiencies, the established brand image and stable financial performance of the company," the release said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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