Essar Shipping in default category

It may be recalled that the group had earlier defaulted on its floating rate notes raised from a group of international and domestic investors. In fact, Essar Steel was the first company in Indian corporate history to do so. The company has promised payment in a roll-over scheme to its investors in the years to come which the debtors have agreed to.

Earlier, Essar Shipping had transferred its Vadinar-based terminals and jetty to group firm Essar Oil citing synergy between the oil and jetty business.

PARRYS DOWNGRADED: Meanwhile, the Crisil has also downgraded the Rs 16.23 crore debenture issue and the fixed deposit FD programme of Parrys Confectionery Ltd PCL.

The debenture issue was downgraded from AA-8216; indicating high safety to A-8216; indicating adequate safety, it said. CRISIL scaled down the rating for the FD programme from FAA-8216; to FA8217; indicating adequate safety.

Revision on ratings in case of PCL reflects the steep deterioration in the company8217;s business profile and consequent impact on its finances, CRISIL said.

The rating was also constrained by the significant difficulties facing PCL in regaining its past profitability and market share, Crisil said adding, however, it finds support from the Murugappa group8217;s shareholding in PCL.