Mumbai, Aug 10: The credit rating agency, Icra, has downgraded the rating assigned to the fixed deposit (FD) programme of IFB Finance Ltd (IFBFL) from `MB-' to `MC'. "The revised rating indicates risk prone status and susceptibility to default is high," an Icra release issued in Mumbai on Tuesday said."The downgrade takes into account the fact that IFBFL has been delaying in meeting its obligations. These delays are expected to continue on account of the company's worsening liquidity position with internal accruals declining constantly and very limited avenues for mobilising additional funds," Icra said.
Meanwhile, another rating agency, Crisil, has reaffirmed the `AA' rating assigned to Rs 75.22 crore non-convertible debenture (NCD) programme of Kotak Mahindra Finance Ltd (KMFL).
"Crisil has also reaffirmed the `FAA+' and the `P1+' ratings assigned to the company's FD and short-term debenture programmes," the rating agency said, adding that the assigned ratings reflect the company's strength in terms of the diversity of business mix and funding sources.
"The ratings also reflect the inherent value of KMFL's investment in group companies, the steady income stream in the form of royalty from Kotak Mahindra Primus Ltd (KMPL), and its income from joint ventures for shared services.
"KMPL's Rs 35 crore NCD has also been assigned `AA-' rating," Crisil said, adding that the assigned ratings reflect the benefits arising on account of its parentage, KMPL's market position, strong capitalisation and its availability to contain credit losses.
Meanwhile, Duff & Phelps Credit Rating agency (DCR) has assigned an `Ind D-2' rating to the Rs 10 crore commercial paper programme of Rollatainers Ltd. "The rating indicates that liquidity factors and company fudamentals are sound and the risk factors are small," DCR said.
Meanwhile, DCR has also assigned an `Ind D-1+' rating (indicating very high certainty of timely payment) to the Rs 15 crore commercial paper programme of Nicco-Uco Alliance Credit Ltd.
A DCR release issued in Mumbai on Tuesday added that the rating agency has downgraded the `Ind BB(FD)' rating assigned to S&S Industries and Enterprises Ltd's FD programme to `Ind DD(FD)' and the company's Rs 10 crore NCD programme from `Ind BB' to `Ind DD'. "The revised ratings indicate that the company has defaulted on debt obligations and has failed to meet the scheduled principal and interest payments," added the release.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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