MPM manufactures newsprint, paper and sugar, with newsprint accounting for 70 per cent of its total income.

During 1997-98, large-scale imports at low costs have affected the domestic newsprint manufacturers. Though, of late, the newsprint prices have recovered a little, the outlook for the newsprint industry is negative.

Though currently, MPM has undertaken an expansion-cum-modernisation project of its sugar and paper divisions, its cash flow is not likely to improve in the medium term. The revised rating takes into account the poor outlook for the newsprint and paper industry, MPM's strained cash flows and the strained debt-servicing ability in the medium term.

The rating agency has placed the FD programme and the partly-convertible debenture programme ratings of Transport Corporation of India (TCI) under rating watch with developingimplications. The current ratings take into account the stable performance of TCI.Currently, TCI has undertaken a restructuring exercise. A scheme of arrangement, detailing the restructuring, has been approved by the company's shareholders and creditors. The scheme is pending approval of the Andhra Pradesh high court.Icra has put the MAA rating of Anagram Finance under rating watch with developing implications. The rating was given to the company's FD and the medium-term non-convertible debenture (NCD) programmes.

Icra has also assigned an A+ rating to the Rs 10-crore commercial-paper programme of Modi Xerox Financial Services. The rating indicates highest safety. The prospect of timely payment of debt/obligation is the best.

Meanwhile, Crisil has awarded a P1+ rating for the certificates of deposit programme of the IDBI Bank. The P1+ rating factors the strong parentage of IDBI Bank, steady growth in business and the benefits accruing out of use of new generation technology and informationsystem.

Crisil has also reaffirmed the AAA rating assigned to the Rs 200-crore bonds programme of National Mineral Development Corporation.