MUMBAI, March 26: Crisil has downgraded the debt programmes of Cifco Finance and Rajasthan Petro Synthetics (RPSL) to the default category.While the fixed deposit (FD) programme of Cifco has been brought down to default grade from the high risk grade, the Rs 9.42 crore partly convertible debenture (PCD) programme of RPSL has been downgraded from the inadequate safety category to the default category. This indicates repayment of the original amount and interest is either in default or is likely to default in future.The rating assigned to RPSL factors in the deteriorating financial performance as reflected by declining profitability, high leveraging, low coverage and strained cash flow position. Crisil feels that these factors are likely to affect the company's ability to meet its obligations in a timely manner.Crisil has assigned a triple-A (SO) rating to the Rs 235 crore bonds programme of National Capital Region Planning Board (NCRPB). The rating is based on the credit enhancement mechanism in theform of a letter of comfort from the Ministry of Urban Affairs and Employment and the repayment mechanism specified for timely servicing of financial obligations on the rated instrument. NCRPB intends to deploy the proceeds of the bond issue towards capacity creation in the urban infrastructure sector for the National Capital Region.ICRA has downgraded the MAA- rating assigned to the FD programme of DCL Finance Ltd to MA+ indicating adequate safety regarding the timely servicing of interest and principal. The downgrade factors the increased financial risk as a consequence of its high gearing and decline in profitability.ICRA has meanwhile assigned an A2+ rating to the Rs 30 crore commercial paper (CP) programme of Karnataka Power Corporation Ltd (KPCL), indicating high safety. The rating assigned by ICRA takes into account KPCL's strong position in Karnataka as the major generator of electricity and the impact of delayed payments by KEB on the liquidity of KPCL.ICRA has also placed the LA- ratingsassigned to the Rs 5 crore non-convertible debenture (NCD) programme and the Rs 11.77 crore PCD of Pasupati Spinning & Weaving Mills (PSWM) on rating watch. This follows a lockout at the Daruhera unit of the company since February 19, 1998 due to labour unrest.ICRA has also assigned an A1 rating to the Rs 15 crore CP programme of Garden Silk Mills Ltd.
