Crisil downgrades VST

MUMBAI, June 9: Crisil has downgraded the fixed deposit instruments of Eastern Mining Allied Industries, SIV Industries and VST Industries.

Crisil has also removed P1+ rating assigned to Wockhardt Ltd’s Rs 60 crore commercial paper programme and `AA’ rating assigned to the Rs 100 crore non convertible debenture issue from rating watch. "The rating factor in the proposed acquisition of Merind Ltd which is expected to change the financial risk profile of the group in terms of gearing levels, interest coverage ratios and operating margins," Crisil said in a statement issued here on Tuesday. It added the outstanding rating of `FAA+’ assigned to the fixed deposit programme of VST Industries has been downgraded to `FB’.

"The revised rating reflects VST’s heightened financial risk profile as the equity infusion which was earlier planned is not likely to materialise on account of it not being cleared so far by the regulatory authorities," Crisil said.

The rating agency has also downgraded SIV Industries Ltd’sfixed deposit programme to FA- from FA+. Crisil said the revised rating of the Meghalaya-based Eastern Mining reflects its concern regarding the company’s weakening risk profile and its stretched liquidity position.