MUMBAI, August 12: Credit Rating Information Services of India Ltd (Crisil) has downgraded the fixed deposit programmes of Onida Finance Ltd (OFL) and Piramal Financial Services Ltd (PFSL). While OFL's FD programme has been downgraded to FB+ from FA, the FD programme of PFSL has been downgraded to FA- from FA.

The revised rating assigned to OFL indicates that the degree of safety regarding timely payment of interest and principal is inadequate. The revised rating reflects the adverse change in OFL's overall risk profile due to a decline in its business performance and a deterioration in its asset quality.

The revised rating assigned to PFSL takes into account the significant increase in hire-purchase exposure of the company towards real estate developers and a general decline in the credit quality of small and medium scale industrial units. There was also a significant decline in the profitability of the company during the year 1996-97.

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