It has also downgraded Durga Finance India's fixed-deposit (FD) programme to BB from BBB, putting it under the default category. It has also withdrawn the AA rating assigned to the FD programme of Kalimati Investment Company Ltd (KICL) and the A+ rating assigned to the FD programmes of Rajuvalika Investments (RIL) and Viplay Investments (VIL).

It has put the LMEL rating under credit watch. "The revised rating takes into account the time overrun in LMEL's sponge-iron expansion project and its implications on the company's profitability, the deterioration in the financial condition of its main customer, Lloyds Steel Industries, and the impending merger of Lloyds Steel with LMEL," it said.

According to CARE, the KICL, RIL and VIL ratings have been withdrawn as thesecompanies have not yet launched their FD programmes. "As it is not mandatory for NBFCs not accepting public deposits to obtain credit ratings, the ratings assigned to the FD programmes of these companies are withdrawn, at their request," it said.

It has also downgraded the rating assigned to the FD programme of Dugar Finance India (DFIL) for a limit of Rs 45 crore from BBB to BB. "The recession, coupled with stoppage of its real estate projects, has adversely affected the earnings of the company. The fall in turnover and profitability and repurchase of a property it had earlier sold have resulted in a deterioration in the overall financial position," it said. It has assigned a PR1+ rating to the commercial-paper programme of Blue Star (BSL) for a limit of Rs 25 crore being issued in tranches.

The rating takes into account BSL's position as the leading manufacturer of air-conditioning systems with a market share of 40 per cent in central and packaged system and its comfortable gearing, interest cover andliquidity, it said.

It has retained Rajasthan State Electricity Board's proposed bond issue at A+ (SO) for an enhanced issue size of Rs 300 crore from Rs 250 crore earlier.