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Journalism of Courage
MUMBAI, January 28: Credit Analysis & Research Ltd (CARE) has suspended, with immediate effect, the ratings assigned to the fixed deposit programmes of four finance companies — Bajaj Leasing & Finance, Tulip Finance, Haryana Credit & Leasing and Ideal Financing Corporation. At the same time, Credit Rating Information Services of India Limited (Crisil) has downgraded the Rs 31.5 crore NCD programme of the Cable Corporation of India from AA- to A+.
The revised rating indicates that the degree of safety regarding timely payment of interest and principal on the instrument is adequate. The revision in rating takes into account the expected reduction in profitability of the company arising out of the sluggish demand facing the industry. The risk, however, is partly mitigated by Cable Corporation’s strong market position and sound financial position.
The rating also factors CCI’s strengths on account of demonstrated government support due to its importance to the Indian economy. The preferential allocation ofexport quotas, improving domestic client profile and negligible risks on account of price support operations are favourably factored into the rating.
The FD programme of Symphony Comfort Systems has also been downgraded by CARE to FA- from FA+. The revised rating indicates that the degree of safety regarding the timely payment of interest and principal is satisfactory. The revised rating takes into account the significant drop in Symphony’s air-cooler sales in 1996-97 which has led to a substantial drop in income on account of the continuing dependence on cooler sales to a large extent and slower offtake of other products.
CARE has assigned triple-A rating to the Rs 300-crore bonds programme of Small Industries Development Bank of India (SIDBI). The Triple-A rating assigned to SIDBI’s fixed-deposit (FD) programme has also been reaffirmed.
CARE also assigned a Triple-A rating ot the Rs 150-crore NCD programme of Infrastructure Leasing & Financial Services. The Triple-A rating assigned to the company’s FDprogramme has also been reaffirmed. An A rating has also been assigned to the Rs 10-crore NCD programme of Kothari Industrial Corporation. The Crisil has assigned a P1+ rating to the Rs 100-crore commercial paper (CP) programme of Cotton Corporation of India (CCI). The rating reflects CCI’s track record of successfully mitigating the risks in cyclical cotton trading business by adopting conservative policies.
