Triple A For Rs 80cr Tata Sons Ncd Plan

Crisil has assigned AAA rating to the Rs 80-crore non-convertible debenture programme of Tata Sons Ltd (TSL) and reaffirmed its rating of the Rs 87-crore debenture issue and the fixed deposit programme of the company at the same notch.

With the new debenture programme Tata Sons will have raised over Rs 400 crore from the market, which is expected to increase the holdings in the Tata group of companies. Tata Sons had earlier raised Rs 300 crore through a rights issue.

The rating reflects TSLs status as the principal promoting company of the Tata group of companies. The rating also takes into account the strong cash flows from its largest division Tata Consultancy Services, said a Crisil press statement.

 

A P1+ rating has been assigned to the Rs 30-crore commercial paper (CP) of Asian Paints (India) Ltd. The rating indicates a very high degree of safety.

According to a Crisil press release, the rating indicates Asian Paints strong market position in the decorative paints segment. It also factors the companys operating efficiency aided by dispersed manufacturing locations, backward integration, and good financial position.

Moreover, Crisil stated that the acquisition of 9.1 per cent stake by ICI plc of the United Kingdom, as consequent developments are not expected to impact the short term credit worthiness and liquidity of the company.

Crisil has also downgraded a couple of NBFCs. The rating of the fixed deposit programme of Central Finance Ltd was downgraded to FA- from FA, indicating adequate safety.

The revised rating reflects the increased risk profile arising out of the change in companys business mix without commensurate change in the funding mix.

However, the rating is supported by promoters experience in this line of business and their conservative attitude towards long term asset financing.

CFL is active in various fund based and fee based activities such as lease, inter-corporate deposits, bill discounting, merchant banking and debt syndication.

Crisil has also downgraded the fixed deposit programme of Tamilnadu Finance Ltd to FB from FA- indicating inadequate safety.

The revised rating takes into account the high exposure to the relatively risky plant and machinery segment and the high level of credit concentration in its portfolio.

The rating also factors the concerns about its stock market operations and the limited financial flexibility.

Crisil has downgraded the fixed deposit programme of Gujarat Propack Ltd to FA- from FA+, indicating adequate safety. The revised rating takes into account the impact of the prevalent over-capacity situation in the biaxially oriented polypropylene industry on GPL resulting in a decline in realisations and almost stagnant sales during 1996-97.

Crisil has downgraded a couple of NBFCs. The rating of the fixed deposit programme of Central Finance Ltd was downgraded to FA- from FA, while that of Tamil Nadu Finance Ltd was downed to FB from FA-