ICRA downgrades Alpic, Apple

The downgrade of Alpic8217;s FD programme by Icra factors the current adverse economic conditions which have resulted in lower collection efficiencies by Alpic, the difficulties faced by NBFCs in the present scenario and the large fixed deposit repayments made by the company over the past year.

Icra believes that all these factors have resulted in liquidity pressures that arelikely to continue. The resource constraints are also likely to result in a slowdown in fresh disbursements. Icra is in the process of evaluating the recent performance of Alpic and the future prospects of its businesses. Pending this, the instrument has been placed under rating watch with negative implications.

The debt instruments of Apple Finance have been downgraded largely on account of the non-earning assets in the company8217;s books and a fall in the yields in main business resulting in a strain on future profitability. This coupled with an increase in provisioning for NPAs could depress the profitability.