Mumbai, Feb 27: The Credit Rating Information Services of India Ltd (Crisil) has put the debt instruments of Merind and Wockhardt under rating watch with developing implications following Wockhardt's announcement on February 25 that it was taking over Merind. Both the companies have initiated steps to complete the necessary formalities in connection with the acquisition.On successful completion of the formalities, Crisil has said that it would make a detailed assessment of the impact of these developments on the credit profile of the rated instruments and will then take a final view on the ratings.
The premier rating agency has assigned an A+ rating to the Rs 15-crore non-convertible debenture (NCD) programme of Hyderabad Industries Ltd (HIL) and a P1+ rating to the company's Rs 1-crore commercial paper (CP) programme.
The rating is reflective of HIL's leadership in the AC sheets market, its strong brand name, plants which adhere to all pollution control norms and stable financials. The rating alsotakes into consideration HIL's dependence on asbestos fibre imports, the downturn in sales of the heavy engineering division and projects under implementation.
Crisil has assigned a Triple-B+ rating to the Rs 6-crore NCD programe of Sabero Organics Gujarat Ltd, indicating that the degree of safety regarding timely payment of interest and principal on the instrument is moderate. The rating takes into account the stabilised production facilities, success in sale of agrochemical intermediates against international and domestic competition and also a good financial position.
The rating also takes into consideration the volatility in prices of the products and raw materials of the company which can cause fluctuation in margins, relatively small size of operations, dependence on monsoons and risk on account of new projects being set up by the company.
Crisil has also assigned a P1 rating to the Rs 6-crore CP programme of Sai Service Station Ltd, indicating that the degree of safety regarding timely payment ofinterest and principal is very strong. The rating agency has also reaffirmed the FAA- rating assigned to the fixed deposit (FD) programme of the company.
Crisil has also reaffirmed the A+ rating assigned to the Rs 50-crore NCD programme of Unitech Ltd and has also reaffirmed the FAA- rating of the company's FD programme. Crisil has also reaffirmed the FAA rating assigned to the FD programme of Premier Auto Electric Ltd.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
