Mumbai, June 3: The Credit Rating Information Services of India Ltd (Crisil) has assigned P1+ ratings to the commercial paper (CP) programmes of Seagram Manufacturing Pvt Ltd (SMPL) and Sony India Ltd (SIL). While SMPL plans to raise Rs 10 crore, SIL will raise Rs 50 crore.The rating assigned to SMPL factors in the credit quality of The Seagram Company Ltd and takes into account Seagram's guarantee for SMPL's bank borrowings in India.
The rating assigned to SIL's CP programme reflects the company's strengths arising out of 100 per cent ownership by its parent company - Sony Corporation, Japan.
The rating agency has also assigned P1+ ratings to the CP programmes of Johnson & Johnson Ltd and Wipro Ltd. While Johnson & Johnson will raise Rs 30 crore, Wipro intends to raise Rs 100 crore through this route. Meanwhile, Crisil has downgraded the Rs 100-crore non-convertible debenture (NCD) plan of Arvind Mills Ltd to AA- from AA.
It has, however, assigned a P1+ rating to the company's Rs 58-crore CPprogramme. Crisil has also downgraded the fixed deposit (FD) programmes of two finance companies - ICDS Ltd and Wiseman Finance Pvt Ltd. The revision in Arvind Mills ratings reflects the anticipated pressures on gearing levels due to delays in cash inflows from reduction of its financial exposure to group companies and divestment of its non-textile related assets.
The downgrade of ICDS and Wiseman Finance is largely on account of weakened asset quality and diminished profitability. Credit Analysis & Research Ltd (CARE) has assigned a PR1+ rating to the CP programme of Simplex Concrete Piles (I) Ltd and has also upgraded the PR1 rating assigned to the CD programme of TimesBank Ltd to PR1+. The rating agency has reaffirmed the triple-A ratings assigned to the Rs 300-crore NCD programme and the Rs 450-crore bonds programme of Indian Petrochemicals Corporation Ltd.
The triple-A rating assigned to the FD programme of the company has also been reaffirmed. CARE has reaffirmed the triple-A rating assigned to theRs 70-crore NCD programme of MRF Ltd.
CARE has downgraded the FD programme of Ace Laboratories Ltd to C from A. The Rs 15-crore preference share programme of the company has also been downgraded to C from A. The ratings have been downgraded taking into view the company's failure to meet its debt service obligations on ICDs in time.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
