Crisil lowers Raymond rating

MUMBAI, July 23: CRISIL, the leading credit rating agency, has downgraded the rating of the debenture instruments and fixed deposit programmes of Raymond Ltd. The rating assigned to the Rs 90.5 crore non-convertible debenture issue and Rs 50 crore non-convertible debentures issue of Raymond has been downgraded from AA’ to AA-‘. The rating assigned to the fixed deposit programme has also been downgraded from FFA+’ to FAA’.

The revision in rating is based on deferment of sales of the loss-making steel division of Raymond to EBG Gasselschaft of Thyssen Krupp Steel Group of Germany. This has resulted in a downward revision in the expected profitability and an increase in gearing of the company.

“The high safety category ratings continue to reflect the strong position of the company in its textiles and steel files divisions and the strong cash flows from these businesses leading to a comfortable financial position,” CRISIL said.