Icra Laa+ For Piem Hotels Rs 60cr Ncds

Icra has assigned a LAA+ rating to the proposed Rs 60-crore non-convertible debenture programme of Piem Hotels Ltd (PHL). As per a statement issued by Icra, the rating for the companys fixed deposit has been retained at MAA+.

According to Icra, both ratings indicate high safety. PHL is an associate entity of Indian Hotels Company Ltd (IHCL). The agency statement said the principal hotel units of the group have sustained strong operating performance despite slackening demand for room accommodation in metro cities.

The rating reflects the intrinsic competitive advantages that PHL possess by virtue of favourable location of its hotel units, the benefits it derives from its association with the Taj group and the expertise it draws from a strong management team, the statement said.

 

Icra has assigned an A1+ rating to the Rs 25-crore commercial paper programme of S Kumars Synfab Ltd (SKSL), indicating highest safety. It has also assigned a LA+ rating to the Rs 250-crore NCD programme of SKSL, indicating adequate safety.

SKSL is a market leader in fabrics used for school uniforms and workday wear.

The company has recently acquired a spinning-cum-weaving unit of Standard Industries Ltd which will strengthen SKSLs position in the textile industry.

The company is also setting up a worsted suitings plant near Mysore which will be its foray into the premium segment of fabrics. Icra expects the project to be commissioned by March 1998.

The success of these ventures would be crucial for the company in the long run. The agencys rating reflects the strength of SKSL in the textile business, the risks associated with the worsted suitings project and the strong financial flexibility of the SKSL group.The rating agency has also assigned a LAA(SO) rating to the Rs 600-crore bond issue of Maharashtra State Electricity Board.