Crisil downgrades two Flex companies

A partly convertible debenture PCD programme of Flex Industries amounting to Rs 39.33 crore has also been downgraded to the C category. Crisil has also downgraded Flex Industries8217; fixed-deposit FD programme to the substantial risk category from FA-.

The revised rating of Flex Engineering8217;s debenture programme reflects Crisil8217;s concerns at the significant decline in the company8217;s financial performance during the year, pressure on operating profits and a strain on the company8217;s liquidity position.

Flex Industries8217; ratings were onrating watch with negative implications pending the inflow of funds through external commercial borrowings ECBs. The company has been planning a 90-million ECB issue to tide over its liquidity problems and meet the repayment obligations in the current financial year ending June 30, 1998. Though the company is still working on the issue, its failure to raise funds has triggered Crisil8217;s decision.