ICRA has downgraded the rating assigned to the fixed deposit programme and also the various medium-term debt programmes of AFL from MAA to MA-. The revised rating also indicate adequate safety and the prospect of timely servicing of interest and principal is adequate. ICRA also says that debt servicing may be affected by adverse changes in the business/economic conditions. Also, the rating assigned to AFL's Rs 50-crore short-term debt programme (including commercial paper) has also been revised from A1+ to A3 and placed on rating watch with developed implications.

The revised ratings also take into account the significant deterioration in the financial performance of AFL for the half-year ended June 30, 2000 and also for the year ended December 1999. It also takes into account the substantial increase in non-earning and low earning assets ason December 31,1999. Also, the potential write-off on non-earning assets are expected to put severe pressure on AFL's future. ICRA has also placed the rating of MB+ assigned to Alpic Finance on rating watch with developing implications. ICRA has also reaffirmed the 'LAAA' rating assigned to ANZ Grindlays Bank for the Rs 200 crore long-term unsecured bond issue.

The bonds were raised to strengthen the capital adequacy of the Indian operations of the bank. The rating indicates the highest safety and a fundamentally strong position. The rating has been reaffirmed after the announcement that effective from August 1, 2000, the sale of Grindlays and Standard Chartered Bank has been completed and the requisite regulatory approvals from RBI has been obtained. The rating agency has also reaffirmed the 'A1+' rating to the commercial paper (CP) issue of Godrej Soaps (GSL) of Rs 30 crore after the company board's "in Principle" approval to demerge into two companies - one to concentrate on consumer goods and the other on chemicals and business development divisions.

The rating factors increased focus that will result on account of the demerger and reduction in debt that will happen on account of the sale of the holdings in GSL. "ICRA would review the rating after the demerger plan are crystallised based on recommendations of the committee of directors," the release said. The rating of MA(SO), assigned to the fixed deposit programme of Wipro Finance (WFL) has been withdrawn at the request of the company. WFL had made an open offer to the fixed deposit holders for prepayment of outstanding fixed deposits which was avialed of by a majority of its depositors. The company has stopped its entire fund and non-fund based activities and has is focussing on recoveries.