HDC in default category

MUMBAI, MARCH 6: Rating agency Crisil has assigned quot;defaultquot; rating to Hindustan Development Corporation8217;s HDC two new non-convertible debenture NCD issues while reaffirming the same rating to its existing Rs 89.93 crore NCD issue. The default rating to the two NCD issues of Rs 9.84 crore and Rs 9.75 crore was assigned on account of sustained week liquidity position due to continued delays in stabilisation of its steel division, indifferent performance of its other divisions, the company8217;s inability to recover funds blocked in inter-corporate deposits ICDs and the large repayment obligations in future, the rating agency said.

Crisil also reaffirmed the previous Rs 89.93 NCD issue of the company at default rating. The Calcutta-based company which is involved in engineering, steel, chemicals, jute and textiles, is proposing to hive off its six divisions to an affiliate company 8211; Hindustan Engineering and Industries Ltd, it said.