Crisil downgrades Onida to default category

MUMBAI, Aug 27: The rating assigned to the Rs 5.77 crore non-convertible debenture issue and the fixed deposit programme of Onida Finance Ltd has been downgraded by the Credit Rating and Information Services Ltd Crisil to the default category.

The revision in rating from BB8217; to D8217; reflects the company8217;s difficult business conditions, increased competitive pressures, declining collection efficiencies, large investments in subsidiary companies that have not yielded adequate returns and strained liquidity and financial position, Crisil said.

Crisil has downgraded the Rs 50 crore bonds programme and the Rs 25 crore non-convertible debenture NCD programme of Orient Paper amp; Industries Ltd OPIL to BB8217; from BBB8217;. The revision in ratings factor the sustained downturn in the paper and the cement industry and the expected further deterioration in the company8217;s capital structure, liquidity position and accrual levels. OPIL, a part of the CK Birla group of companies, is engaged in the manufacture and sale of paper, cement and fans.