Timex, Llyods Steel Issues Scaled Down By Crisil

The Tata-owned Timex Watches and Lloyds Steel Industries have been downgraded to BBB, a notch above inadequate safety, by Credit Rating Information Services of India Ltd (Crisil) yesterday.

The agency had also downgraded the ratings assigned to Manipal-based Pai Groups ICDS Ltd..

Lloyds Steel Industries Rs 8.124 crore deep discount bond programme has been downgraded to BBB from A-. According to a Crisil release, the revised rating indicates only moderate safety.

The rating agency cited pressure on profitability arising out of increase in power tariffs, poor demand offtake and low international steel prices as reasons for the revised rating. It expected the condition to persist for the next two years till the company completes the proposed captive 80 mw power plant.

 

The rating of the Rs 56 core partly convertible debenture issue of Timex Watches was also downgraded from A- to BBB, indicating moderate safety.

The fixed deposit programme of ICDS was also downgraded from FA+ to FA indicating adequate safety. Its declining profits, deteriorating asset quality have been sighted as reasons for the revised rating. It has assigned FAA+ to Tamil Nadu Industrial Development Corporations fixed deposit programme. Anagram Housing Fin secured FA- for its fixed deposit programme. Hindustan Ciba-Geigys Rs 30 crore CPand Sicoms Rs 50 cr venture were awarded P1+. SBI Factors and Commercial Services also bagged P1+ for its Rs 6 crore short-term debt programme.

Meanwhile, CARE has assigned Care A+(SO) to the Rs 250 crore bond issue of Kerala State Electricity Board. The fixed deposits of PSM Spinning Mills and Haryana Credit and Leasing were rated Care A-(FD) and Care BB(FD) respectively.