The ratings of both the debt programmes take into consideration the operational efficiency of the company in manufacturing and selling synthetic ropes in both the domestic and international markets.

The company's superior margins from domestic realisations are vulnerable to reductions in the import duty of synthetic rope, which is currently 65 per cent. The fixed levels of debt servicing could also be affected by reduction in raw material prices leading to reduced realisations and the corresponding lowering of profits.

Duff & Phelps has assigned a triple-A (SO) rating to the Rs 10.11-crore sale of receivables of Ceat Financial Services Ltd (CFSL) indicating that the programme is of the highest credit quality. The transaction is in the form of sale of receivables by CFSL.

The company will receiveupfront the entire proceeds of the sale less the cash reserve, thereby establishing the bankruptcy remoteness of the structure. The cash reserve will be in the form of a deposit by CFSL with the buyer which will be adjusted quarterly to maintain the required levels of outstanding receivables. Any defaults in the portfolio will be met from the reserve.

The rating agency has assigned triple-B+ and triple-B ratings to the fixed-deposit (FD) programmes of Subuthi Finance and Dove Finance respectively. It has downgraded the rating assigned to the FD programme of Synergy Financial Exchange Ltd from double-B to B.

Meanwhile, Credit Rating Information Services of India Ltd (Crisil) has reaffirmed the P1+ ratings assigned to the commercial paper (CP) programmes of Godfrey Philips India Ltd and Hero Cycles Ltd. While Godfrey Philips will raise Rs 25 crore, Hero Cycles will raise Rs 20 crore.

Crisil has assigned a P1 rating to the Rs 6-crore CP programme of Gestetner India Ltd, while it has downgraded the FDprogramme of Tamil Nadu Newsprint & Papers Ltd (TNPL) to FA+ from FAA. The revised rating reflects weakening of TNPL's financial performance mainly on account of the extended downturn in the paper industry, which has adversely impacted the company's earnings and cash generation from operations.

Crisil expects the competitive pressures in the newsprint industry to remain high in the near to medium term and profit margins may not improve significantly from the existing levels.