Mumbai, February 25: The Credit Rating and Information Services of India Ltd (Crisil) has assigned a P1+ rating to the Rs 150-crore short-term debt (STD) programme of Bharat Electronics Ltd (BEL). This indicates that the degree of safety regarding payment on the instrument is very strong. The rating is supported by the strategic importance of BEL to the ministry of defence which is manifested in the form of ownership and explicit support from the centre, its technical capabilities and BEL's efforts to diversify its customer base.The rating also takes into account BEL's moderate operating effciency, average financial position and the fairly significant and cyclical requirement of working capital. BEL is a defence public sector undertaking wth multi-locational facilities spread over six states.
Crisil has also assigned a P1 rating to the Rs 15-crore commercial paper (CP) programme of International Distillers India Ltd (IDI) indicating that the degree of safety regarding the timely repayment on theinstrument is very strong. The rating reflects IDI's fast growing brand equity and market position in its alcoholic beverages business.
The rating also factors in IDI's innovative marketing strategies, expanding distribution base and its first mover advantage over other international competitors. The rating is supported by the company's strong parentage and the strong portfolio of brands that it possesses. Moreover, the increase in International Distillers and Vingtners' stake in IDI following the recent divestment of Polychem Ltd's stake would facilitate the integration of IDI's operations with its foreign parent.
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