Onida, PFSL downgraded

MUMBAI, August 12: Credit Rating Information Services of India Ltd Crisil has downgraded the fixed deposit programmes of Onida Finance Ltd OFL and Piramal Financial Services Ltd PFSL. While OFL8217;s FD programme has been downgraded to FB from FA, the FD programme of PFSL has been downgraded to FA- from FA.

The revised rating assigned to OFL indicates that the degree of safety regarding timely payment of interest and principal is inadequate. The revised rating reflects the adverse change in OFL8217;s overall risk profile due to a decline in its business performance and a deterioration in its asset quality.

The revised rating assigned to PFSL takes into account the significant increase in hire-purchase exposure of the company towards real estate developers and a general decline in the credit quality of small and medium scale industrial units. There was also a significant decline in the profitability of the company during the year 1996-97.