Crisil officials had, earlier, revealed to Business Standard that ITC, the firms parent company, was facing problems with the enforcement directorate and if this has any adverse fallout in the coming days, we will have to act in the best interest of the investors.
The outstanding A+ rating assigned to the Rs 50 crore non-convertible debenture issue and the FAA- rating assigned to the fixed deposit programme are being put on rating watch.
Crisil, in an official release, stated that the financial flexibility of ICFL would be constrained due to the investigation being carried out by the enforcement directorate on ITC Limited (the main promoter of ICFL). This is likely to impair the resources position and financial performance of ICFL.
The company is also implementing a business and financial restructuring plan aimed at consolidating the financial services businesses of the group. The restructuring envisages strengthening of the financial structure of ICFL through the infusion of funds.
ITC Classics fixed deposit programme was downgraded to FAA- from FAA+ while the NCD programme was downgraded to A+ from AA by the rating agency on June 14.
Top ITC Classic officials had met Crisil officials recently. Sources at Crisil said recently that the we are of the view that as of today, ITC Classics liquidity is comfortable and it can pay off the liabilities that will mature. But we are constantly reviewing the ratings because we have to keep in mind that the top management in this company belongs to ITC Ltd.
