"The rating factors in J&J's business and financial strengths arising out of its strong market position in the consumer and healthcare business, and its above average financial risk profile. The rating also factors in the support from its parent, J&J, USA, which has an outstanding rating of `AAA/A-1+' from Standard and Poor's," a Crisil release issued in Mumbai on Wednesday said. According to Crisil, the re-affirmation of high-safety category ratings of SCIL reflects the company's strong and established position in the pigments industry, association with Dainippon Inks and Chemicals of Japan (the leading international producer of pigments), integrated manufacturing facilities, improvement in capital structure as anticipated earlier, and comfortable interest coverage ratio.

"These factors are partially offset by the highly competitive nature of pigments and agro-chemicals businesses, pressures on realisations in the pigments industry, seasonality in the agro-chemicals business, and the company's relatively smaller size and limited product range in the agro-chemicals business. Further, despite improvement, the gearing level continues to be relatively high. However, Crisil expects the capital structure to further improve from the existing level," the rating agency release said.

"The outstanding rating of `FB+' assigned to the fixed deposit programme of Overseas Sanmar Financial Ltd (OFSL) has been placed under rating watch with developing implications," Crisil said.

"The promoters of OSFL are in the process of restructuring the operations of the company. As a result of the above restructuring, the credit risk profile of the rated instrument would undergo a change,"Crisil said and added that it is in talks with the management of OSFL to ascertain the various modalities and implications of the above initiative.