Usha Ind on Crisil rating watch

In a simultaneous development, the Credit Analysis & Research Ltd (Care) has downgraded the FD programme of Birla Corporation Ltd.

The rating agency’s decison to put Usha Martin and Usha Beltron on rating watch is subsequent to the proposed merger of these companies with effect from October 1, 1997. Crisil will announce the rating for the merged entity after reviewing the implications of the merger.

Crisil has assigned an A rating to two non-convertible debenture (NCD) programmes of Usha Martin Industries amounting to Rs 78.82 crore while the Rs 20 crore NCD programme of Usha Beltron has been assigned an AA- rating. The fixed deposit programme (FD) has been assigned an FAA- rating while the Rs 22 crore commercial paper (CP) programme has been assigned a P1 rating.It has downgraded three debt programmes of Kitply Industries Ltd. While Kitply’s Rs 20 crore NCD programme has been downgraded to A- from A+, the FD programme has been brought down to FA. The Rs 10 crore CP programme has also been downgraded to P2+ from P1+ earlier.

The revised ratings reflect the increased uncertainty in the plywood industry on account of the Supreme Court ruling on timber felling in the north-east, the deferment of the returns from the company’s sugar project and the increasing financial risk associated with the company.

The premier rating agency has also downgraded the FD programmes of Deccan Finance and Soundararaja Finance Ltd. While Deccan’s FD has been downgraded to FB+ from FA-, Soundararaja has been downgraded to FB from FA.

The FA rating assigned to the FD programme of Gujarat Gas Financial Services has however been reaffirmed at FA.

It has meanwhile assigned a P1+ rating to the Rs 30 crore CP programme of Pidilite Industries Ltd. The rating assigned reflects Pidilite’s leadership in the synthetic adhesives market. strong market position and distribution network for Fevicol and related products, adequate operational abilities and consistent operating profitability.

The FD programmes of Tamil Nadu Power Finance & Infrastructure Development Corporation Ltd and Tamil Nadu Transport Development Finance Corporation Ltd have both been assigned FA+ ratings. The rating assigned factors the healthy performance of both the organisations which are both state government companies.

The Credit Analysis & Research Ltd (CARE) has downgraded the FD programme of Birla Corp Ltd. It has however assigned the company a PR1+ rating for its Rs 20 crore CP programme. The Rs 5 crore CP programme of Rhone Poulenc Agrochemicals has been assigned a PR1 rating.