Rseb Debt Downgraded By Icra

The Rajasthan State Electricity Boards (RSEB) non-convertible debenture (NCD) has been downgraded by Icra with the rating falling to LA+ (SO) indicating adequate safety from the earlier LAA (SO) in 1996. The rating agency cited RSEBs tightening liquidity position for the revised rating.

Earlier, CARE had assigned a rating of A+ to the RSEBs recent Rs 300 crore bond issue. RSEBs tight financial constraints are expected to persist, unless tariffs are revised extensively, an Icra release said. The agency estimates the board is likely to continue to borrow in excess of its capital expenditure plans to meet its current obligations.

 

Meanwhile, Crisil has downgraded the Rs 11.6-crore NCD programme of Shri Ishar Alloy Steels (SIASL) from A- to BB+ indicating inadequate safety regarding timely payment of interest and principal. It has also awarded P1+ to the Rs 15-crore commercial paper issue of Coates of India (COIL), indicating very strong safety. The FAA+ rating given to it fixed deposit programme and AA rating to its Rs 3-crore NCD issue was reaffirmed.

Max India also secured AA- for its Rs 41.99-crore NCD and a reaffirmation of FAA for its Fixed Deposit programme.

The Rs 150-crore deep discount cumulative convertible debentures issue of Max Telecom Ventures also bagged AAA (SO).