Mumbai, Oct 27: Domestic rating agency, Icra, on Wednesday assigned an `MAA' rating to the Rs 75 crore non-convertible debenture/bond programme of Escorts Ltd. The rating signifies high safety. The rating indicates prospects of timely servicing of the interest and principal amount is high, but below the `MAAA' rating. The rating factors in the established position of the company in the competitive tractor industry and its presence in diverse range of HP segments. It also takes into account expected inflows from the proposed divestments and recovery of group advances which likely to result in comfortable liquidity position in the short to medium term.Icra has also assigned `A1' rating to the Rs 25 crore commercial paper programme of DCM Shriram Consolidated Ltd (DSCL). The rating indicating highest safety and takes into account the company's established position and stable profitibility in urea business which accounts for over half of its turnover. The rating also factors in improved profitibility from PVC business. These are set-off to some extent by a decline in the chloro alkali business, high receivables in the urea business and high debt repayments maturing in the short medium term. The rating takes into account steps initiated by DSCL to mitigate the repayment risk in future by tying up additional loans for longer maturity.
Meanwhile, Crisil has reaffirmed the `A-' rating to all the three debenture issues of DSCL aggregating Rs 85.85 crore. The issues are two non- convertible debenture issues totalling Rs 51.37 crore and a Rs 34.48 crore partly convertible debenture issue.
In another move, Crisil has assigned `AA' rating to the new non-convertible debenture issue of EID Parry for Rs 100 crore. The rating agency has reaffirmed the `AA' rating to the Rs 69.20 crore non-convertible and Rs 28.30 crore partly convertible debenture issue of the company. The Rs 100 crore commercial paper issue has been assigned the `P1+' rating.
The rating agency has reaffirmed the `P1+' rating to the Rs 30 crore commercial paper issue of Godrej Pacific Technology Ltd.
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