Crisil Reaffirms Aaa Rating For Exim Papers

The Credit Rating Information Services of India Ltd (Crisil) has reaffirmed the AAA rating assigned to the fixed deposit, certificate of deposit programme and the bond issue of Export Import Bank of India.

The rating agency has rated the FD program AAA while the AAA rating assigned to the Rs 250 crore CD program and Rs 170 crore bond issue has been reaffirmed.

The rating indicates the highest degree of safety with regard to timely payment of interest and principal.

Crisil has indicated that the rating reflects the support of the government to the bank which is demonstrated by the periodical infusion of capital.

 

The rating also reflects the sound capitalisation, profitability and comfortable liquidity position of Exim Bank.

Sounding a note of caution, Crisil has pointed out that Indias export competitiveness and its impact on Exim Banks asset growth and quality would influence its future rating.

Crisil has also reaffirmed the A rating assigned to the Rs 5.11 crore partly convertible debenture issue of Deccan Cements Ltd (DCL).

The rating reflects adequate safety regarding timely payment of interest and principal.

In a press release, Crisil has stated that the rating takes into account DCLs concentration in the highly competitive market in Andhra Pradesh, the small size of its operations and the fairly stable financial performance. DCL is a Hyderabad-based cement company with an installed capacity to manufacture 1.98 lakh tonne per annum of cement. The company reported a net sales of Rs 37.64 crore and a profit after tax of Rs 6.85 crore in the last financial year.

The Rs 4 crore commercial paper programme of K G Khosla Compressors Ltd has been assigned a P2 rating indicating that the degree of safety regarding timely payment on the instrument is strong.