Six corporates plan Rs 245 cr CP issues

MUMBAI, December 26: Six corporates, led by Tata Finance and Madras Cements, propose to access the commercial paper (CP) market to raise Rs...

MUMBAI, December 26: Six corporates, led by Tata Finance and Madras Cements, propose to access the commercial paper (CP) market to raise Rs 245 crore. While Tata Finance will raise Rs 100 crore, Madras Cements will raise Rs 56 crore.

Sun Pharmaceuticals and L&T Finance propose to raise Rs 28 crore and Rs 25 crore respectively, while Ciba Speciality Chemicals and Indo National will raise Rs 20 crore and Rs 16 crore respectively.

The Credit Rating Information Services of India Ltd (Crisil) has assigned all the six debt programmes P1+ ratings which indicates the degree of safety on timely payment of interest and principal on the instrument is very strong.

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The rating assigned to the six corporates is indicative of their favourable market position. The rating also factors the company’s strong process efficiencies, stable financial position and the relatively high gearing.

Meanwhile, the premier credit rating agency has downgraded the fixed deposit programme of VCK Capital Market Services from FB+ to FC. The revised rating indicates that the degree of safety regarding timely payment of interest and principal on the instrument is doubtful. The revised rating reflects VCK’s inherently volatile nature of operations, its sustained poor asset quality, the increasing risk profile of the NBFC sector and deteriorating financial performance. Crisil has, however, reaffirmed the FA- rating assigned to the FD programme of K&P Capital Services.