While Madhusudan Industries' Rs 5.51 crore non-convertible debenture (NCD) issue has been downgraded from A to A- and its fixed deposit (FD) programme to FA from FA+, the rating given to the FD programme of Mahindra Ugine Steel Company has been revised to FC from FA by Crisil.

Crisil said that the rating downgrade of Madhusudan Industries is on account of a decline in the company's profitablity, limited demand growth and continuing poor performance of its subsidiary, Madhusudan Ceramics India Ltd. The revised ratings still represent adequate safety of the instruments.

Mahindra Ugine Steel Company too sufferred on account of sustained downtrend in its steel business, which has affected the company's debt servicing ability, a Crisil release said.

Crisil has also downgraded the FD program of Precision Fasteners Ltd from FB- to FD and its Rs 67 lakh NCD from B to D, indicating that both instruments are either in default or expected to default.

In addition to these instruments, the three NCDs of Sabero Organics Gujarat Ltd, totalling Rs 11.19 crore have all been downgraded from A- to C, on account of deteriorating credit quality of the company. These ratings indicate substantial risks associated with the instruments.

"The company did not arrange for short-term funds in the face of build-up of receivables and was adversely affected by falling pesticide prices in the country," the Crisil release said.

These downgrades by Crisil will make it impossible for the companies to garner funds at the lower costs they had envisaged earlier.

Meanwhile, the press release from Crisil stated that the rating agency has withdrawn the "inadequate safety" rating it had earlier given to the fixed deposit instruments of Central Finance Ltd and Gujarat Securities Ltd. This is because both companies have now met with their fixed deposit obligations and have no outstanding fixed deposits, the release said.