MUMBAI, April 7: Credit Analysis & Research Ltd (CARE) has downgraded the fixed-deposit programme of Arihant Credit Capital Ltd from BB to D, indicating default. "The rating has been downgraded taking into account the company's reported failure to meets its obligations to fixed-deposit holders in time," a CARE press release stated.Arihant Credit is mainly engaged in securities trading, merchant banking and short-term lending activities.
The Credit Rating Information Services of India Ltd (Crisil) has downgraded the non-convertible debenture (NCD) and fixed-deposit programme of Precision Fasteners Ltd from double-A to triple-B and from AA- to A respectively.
The downgrading has been done on account of the liquidity crunch faced by the company owing to the ongoing capital expenditure programme, the delay in the inflow of additional working capital funds sought by the company and the consequent funding mismatch, a Crisil press release stated. The rating factors in the increase in the company's gearing andgroup company investments over the past three years accompanied by a debtor build-up in the company's books, the press release stated.
BSES Ltd's proposed Rs 50-crore NCD programme has been assigned triple-A by Crisil. CARE has assigned AA-(FD-SO) (double-A minus- structured obligation) rating to the on-going fixed-deposit programme of Kerala Transport Development Finance Corporation Ltd (KTDFC), wholly owned by the Kerala government, for a limit of Rs 8 crore. The rating is based, inter alia, on a guarantee given by the government of Kerala meeting the payment obligations on the fixed-deposits mobilised by KTDFC, a CARE press release stated.
Though the company's operating income has been growing at a CARG of 56 per cent, PAT margin was healthy and the entire loan assets have been classified standard, the relatively low rating assigned to the programme is due to large exposure to Kerala State Road Transport Corporation (KSRTC), which is financially very weak.
The other credit ratings of the week arethe reaffirmation of the AA+ rating assigned to the fixed-deposit programme and the P1+ rating for the commercial paper (CP) programme of BOC India Ltd by Crisil. CARE has rated four commercial paper programmes this week. These include the PR1+ rating assigned to the Rs 10-crore CP programme of MP Birla group company Universal Cables Ltd, PR1+ to the Rs 40-crore CP programme of Goetze India Ltd.
Gontermann-Peipers Ltd's Rs 10-crore CP programme has been assigned a PR1 rating by CARE. The Rs 10-crore CP programme of Emco Transformers Ltd has also been assigned PR1.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
