Bombay Dyeing downgraded

MUMBAI, DEC 16: The Rs 92.24 crore debt issues of Bombay Dyeing and Manufacturing Company Ltd BDML, the textile and DMT major which has been showing a downward trend in operations, has been downgraded by Credit Rating Information Services of India Ltd Crisil on account of the challenges faced from declining profitability of its DMT division.

While the rating of Rs 23.35 crore non-convertible debentures and Rs 68.89 crore secured premium notes 1993 has downgraded from AA8217; to AA8217;, Crisil has also assigned AA rating to its Rs 1.5 billion NCD programme.

8220;A combination of factors such as the unfavourable international demand supply scenario for fibre intermediates, increasing susceptibility to price movements of DMT and Paraxylene PX and decline in duty protection to the domestic industry has affected the division8217;s performance. Besides, the textile division continues to face pressure of a high cost structure and susceptibility to cotton prices, a problem common to composite mills,8221; Crisil said.