The revision of the outstanding ratings of the textile companies reflects Crisil's concerns related to the increasingly difficult market conditions for cotton and blended yarn industry and its heightened risk profile. This stems from a high degree of competition in the industry, significant decline in realisation and sustained pressure on volumes due to low offtake both in domestic and exports markets, says the Crisil's rating note.

The outstanding debenture and fixed deposit ratings of Mahavir Spinning & General Mills have been downgraded from AA+ to AA- and `FAAA' to `FAA' respectively by the rating agency. The P1+ rating assigned to the company's Rs 25-crore commercial paper programme has been reaffirmed.

Yarn spinning is the main business of the company contributing 52 per cent of the total sales of the company in 1997-98.

The rating assigned to the Rs 71.2-crore non-convertible debenture issue of Vardhman Polytex by Crisil has been downgrade from `AA' to `A+'.

Also factored into the revised ratings of the company is the overall debt usage level of the company and limited prospects of a marked improvement in the capital structure which would constrain the interest coverage ratios especially in view of the lower than anticipated cash generation from business in the wake of a challenging business environment.

The outstanding debenture ratings of Vardhman Spinning & General Mills have been downgraded from `AA+' to `AA-'.

The P1+ rating assigned to the company's Rs 15-crore commercial paper programme has been reaffirmed.

According to a Crisil note, the rating of Nabard is supported by its strong policy of refinance rural credit which results in continued support from the government. The government support demonstrated in the form of enhancement in the equity capital, issuance of tax-free/priority sector bonds asset quality protection and tax exempt status for Nabard.