Crisil's revised rating of GKW reflects its concerns on the sustained weakening performance of the company's various divisions, the expected deterioration in its financial-risk profile and its fully stretched liquidity position.

The revision in rating of Gujarat Machinery's FD programme takes into account the decline in demand for glass-lined equipment, owing to lower capacity additions by user industries, an increase in competition in the industry and declining sales and profitability.

ICRA has also assigned an MAAA rating to the fixed-deposit (FD) programme of Sundaram Finance. The rating reflects the highestsafety, indicating that the prospects of timely servicing of the interest and principal as per the terms is the best.

The rating takes into account the company's superior asset quality, high profitability, diversified funding base, comfortable liquidity and high financial flexibility. ICRA expects Sundaram Finance to retain its leading market position despite adverse conditions. The firm is one of the few non-banking finance companies (NBFCs) to be assigned a triple-A rating for its FD programme in the current economic scenario.

While Sundaram Finance's collections have declined to 90 per cent in 1997-98 from the earlier 95 per cent owing to recession, it does not adversely affect its liquidity, which remains comfortable. Though non-performing assets (NPA) levels have increased, Sundaram Finance's higher profitability has allowed it to absorb the more stringent provisioning as per the new norms.

ICRA has reaffirmed the LAA rating assigned to the Rs 25-crore PCD programme of ITC Hotels, indicating highsafety. ITC Hotels has 15 hotel properties spread over 14 locations. It also has a presence in the mid-market segment through Fortune Park Hotels.