Sbi Caps Ncd Assigned Laaa Rating By Icra

The non-convertible debenture (NCD) issues of SBI Capital Markets amounting to Rs 100 crore has been assigned MAAA, while that of Indian Hotels is rated LAAA by Icra, both indicating highest safety.

The fixed deposit programme of Nicco Uco Financial Services (NUFS) has been downgraded to MAA. Dena Banks subordinated unsecured debentures worth Rs 100 crore has been upgraded to LAA and debentures amounting to Rs 200 crore is rated LAA. The CD of the bank amounting to Rs 500 crore has been assigned A1+.

The commercial paper programme of Indian Hotel, Surat Electric Company and Bogaigaon Refinery & Petrochemicals is rated as A1+, indicating highest safety. The rating reflects the companys conservative business practices, prudent accounting policies that have led to build-up reserves, excellent tenure matching of assets and liabilities and deployments of large quantum of funds in ICDs and bills with good asset quantity which can be liquidated in case of contingencies.

 

Balrampur Chinni Mills CP programme for Rs 50 crore is rated A1+ and the medium-term NCD programme for Rs 20 crore is rated as MAA-, indicating high safety.

The tax-free bonds of Indian Railways Finance Corporation (IRFC) amounting to Rs 300 crore has been rated LAAA (SO).

There is a maturity mismatch as the tenure of the companys bonds is shorter than the lease period. The lease agreement covers IRFC for this shortfall at the time of redemption of bonds. As per the agreement, the shortfall would be made good through bullet payment of lease rentals in advance by the lessee.

The rating has taken into account the Letter of Comfort issued by the ministry of railway to cover the shortfall in redemption of principal and interest obligations of the rated bond issues. Icra has downgraded the rating assigned to Pennar Aluminium Company to LD from LBB indicating default. the agency said the companys performance was affected due to sluggish demand and sharp reduction in import duties resulting in sever competition from imports.

The downgrade reflects the weakened financial position of the company.

The rating agency has assigned A1+ for the Rs 25-crore CP programme of S Kumar Synfab (SKSL), indicating highest safety, while LA+ has been assigned to the Rs 25-crore NCD programme of the company, indicating adequate safety. The rating reflects SKSL strength in textile business, the risks associated with the worsted suiting project and the strong financial flexibility of the company.