OCL raps CARE downgrading

Care downgraded the FD programmes as well as NCDs and bonds of four NBFCs on Thursday. They are Olympia Capitals, DCM Financial, Srei International and Suraj Securities.

This is the second instance in the recent past when a finance company has accused the rating agency of unfairness and challenged its quot;opinionquot;. Earlier, in October 1996, Lloyds Finance dragged both Care and Credit Rating Information Services of India Ltd Crisil into controversy. Care had rated the FD programme of the company with a triple-A AAA while Crisil refused to ratify the Care rating and instead offered it a new rating which was one notch below. Lloyds Finance refused to accept the Crisil rating and mobilised FDs on the strength of the Care rating.

Reacting to the OCL developement, Care sources said that the rating is justified quot;and we stand by our ratingquot;. The financials of the company had deteriorated due to high interest burden and there was fear that the company might default, they pointed out. quot;The performance of the company has been poor and the asset quality has deteriorated,quot; the rating agency said.