Crisil Reaffirms Aaa Rating For Countrywide Debenture Issue

The Credit Rating Information Services of India Ltd (Crisil) has reaffirmed the AAA(SO) rating for Countrywide Cons-umer Financial Services (CCSF) Rs 45-crore debenture issue and assigned a P1+ rating to its Rs 40-crore commercial paper (CP) programme.

The rating gains significance in the present scenario where most non banking finance companies (NBFCs) have been downgraded. Market leaders like Alpic Finance and Kotak Mahindra Finance were also among the NBFCs downgraded recently.

The high rating for Countrywide is attributable to the guarantee given by GE Capital Services, USA.

According to an official release, Crisil has downgraded the Rs 12-crore non-convertible debenture programme of ASIL Industries Ltd from BB to B.

 

Crisil has cited depressed market conditions, intense competition, high leveraging and a strained cash flow situation as reasons likely to affect ASILs repayment capacity.

The Rs 40-crore NCD programme of Credential Finance Ltd has also been downgraded from BB to D, while its fixed deposit programme was downgraded from FB+ to FD.

It may be recalled that Crisil had downgraded the ratings assigned to these instruments to non-investment (speculative) category in August last.

The illiquid nature of assets, financial inflexibility and negative accretion to fixed deposits were expected to impact cash flows, the release added.

Crisil has assigned a P1+ rating to the Rs 6-crore CP issue of the Coimbatore-based Precot Mills Ltd.

According to the release, the rating has been given in view of its favourable operating efficiencies, strong market presence in the cotton yarn business and stable financial position.

The company's turnover and net profits for the year ended March 31, 1997 stood at Rs 159.3 crore and Rs 10.42 crore, respectively.