The revised rating of the fixed deposit programme from "FAA+" to "FAA-" and of the Rs 100 crore NCD issue from "AA" to "A+" reflects the declining collection efficiencies on the direct loan portfolio, the depreciation in the value of the equity investment portfolio and the consequent pressures on profitability. Sicom has, however, been assigned top rating of "P1+" for its Rs 50 crore commercial paper programme.

Crisil said the ratings continue to factor Sicom's strengths as reflected in its comfortable capital adequacy, the organisation's strategic role in Maharashtra and funding support from the state government and state-level public enterprises.

The rating agency said it has taken into consideration the management's efforts towards reduction in the non-performing assets, recovery strategies from delinquent accounts in the direct loanportfolio and the conservatism, as regards asset quality, in the company's future lending policies.

The success of the recovery strategies on a larger scale would take time to fructify and due to the difficult business conditions, there are likely to be continued pressures on the recoveries from the direct loan portfolio.

Crisil has also downgraded to the rating of the fixed deposit programme of Integra Capital Management Ltd (ICML) to "FB+" from "FA-".