"Crisil has removed the debt instruments of Gesco from `rating watch' following the company having received lender, creditor and shareholder approval for the proposed demerger of its property division into a separate legal entity.

The rating reaffirmation and removal from rating watch takes into account the completion of most of the formalities for the demerger and the relatively low impact of the demerger on the financial risk profile of the company. The business position is expected to increase on account of greater focus on the more profitable shipping business," a Crisil release issued in Mumbai on Wednesday said.

"The `P1' rating assigned to Cadila Healthcare Ltd reflects the above-average market position of the company in the domestic pharmaceutical formulations business with presence of strong brands in certain therapeutic areas, wide therapeutic coverage and operational strengths. These strengths are partially offset by relatively low proportion of exports and rising gearing levels as a result of largely debt funded project being implemented by the company," the agency release added.

Meanwhile, the rating assigned to the Rs 5 crore CP programme of Gujarat Machinery Manufacturers Ltd (GMM) has been upgraded by the from `P2' to `P1'. Crisil has also reaffirmed the `FA+' rating assigned to the FD programme of GMM on account of the company's dominant position in the domestic glass-lined equipment market, its strong technical capability, and its favourable capital structure.

"Further, the company's improved liquidity position backed by liquid investments provides support to its CP programme. The ratings also factor in the majority stake taken by Pfaudler Inc in GMM in 1998-99 and the associated benefits that would accrue to GMM in terms of a larger market reach and superior product development. The ratings are, however, constrained by the decline in demand for glass-lined equipment due to limited fresh investments towards capacity creation in the end user industries, increased competition and declining sales and profitability of GMM," the Crisil release added.