MUMBAI, April 2: Credit Rating Information Services of India Ltd (Crisil) has downgraded the fixed-deposit programme of Master Trust Ltd from `FA-' to `FB+' and Mukerian Papers Ltd's partly-convertible debenture (PCD) programme from `BB' to `D'. The new rating of Mukerian Papers indicates that the NCD programme is either in default or likely to be defaulted.The Rs 50-crore PCD programme of Mukerian Papers has been downgraded owing to "deterioration in the financial risk profile on account of low operating profitability, adverse change in the capital structure, significant increase in exposure to group companies and locking up of funds in its expansion-cum-modernisation project which has resulted in stretched liquidity position for the company," the Crisil release stated.Rating agencies had recently downgraded many companies to the default category due to their poor financial performance.Credit Analysis & Research Ltd (CARE) has downgraded the Rs 20-crore non-convertible debenture issue of GujaratPipavav Port Ltd from triple-B to double-B plus. The downgrading follows an escalation in the costs and a delay in the completion of the port and the resultant liquidity constraints facing the company.A joint-sector company, Gujarat Pipavav is engaged in setting up a port and a conventional as well as a modern ship-breaking yard at Pipavav. The rating has also taken into consideration the recent alteration of the project's scope by increasing the aggregate cargo-handling capacity from 10.4 mtpa to 12.06 mtpa. This has resulted in cost escalation of the port, while the estimates of the ship-breaking yards still remain the same.Master Trust's revised rating "reflects the deterioration in the overall risk profile of the company on account of depressed market conditions which have affected its fund and fee-based businesses resulting in lower profits, deteriorating receivables position, locking up of funds in investments in group companies and a high exposure in the ICD market," a Crisil releasestated.Crisil has also assigned FA+ rating to the fixed-deposit programme of New Kenilworth Hotel Ltd. The rating reflects the company's strong brand equity as value-for-money hotel in Calcutta, the expected sustainability of its comfortable business position and its comfortable financial position.CARE has assigned the highest rating of PR1+ to the commercial paper programme of Blue Star Ltd (Rs 25 crore) and Zandu Pharmaceutical Works Ltd (Rs 6 crore). It has reaffirmed the double-A rating given to the Rs 50-crore fixed-deposit programme of 20th Century Kinetic Finance Ltd and Rs 10-crore fixed-deposit programme of Zee Telefilms. The other rating of the week is the reaffirmation of the double-B rating assigned to the fixed-deposit programme of Sierra Investments Ltd. The size of Sierra's FD programme has been brought down from Rs 60 lakh to Rs 40 lakh.
