Crisil has downgraded the fixed deposit programme of Mahamaya Investment to FA- from FA+, indicating satisfactory safety regarding timely payment of interest and principal.
The revision in rating factors in the lower financial flexibility due to a sharp reduction in market value of investments, especially Indian Dyestuff Industries (IDI) and Mafatlal Dyes and Chemicals (MDC), as also the companys continued dependence on dividend income from IDI and MDC, as well as deterioration in performance of IDI which would affect MILs income.
Crisil has assigned a P1+ rating for the Rs 25-crore commercial paper of Sundaram Fasteners indicating that the degree of safety on timely payment of the instrument is strong. According to Crisil, the rating is reflective of the companys dominant market position in the fasteners industry and its above average financial performance. It also takes into consideration SFLs vulnerability to the cyclicality in the downstream automobile industry.
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Crisil has also assigned P1+ rating to the Rs 25-crore commercial paper of BOC India. The rating reflects expected sustainability of the companys favourable market position in the gases market, its comfortable operating efficiency and the comfortable financial risk profile.
Colour-Chems Rs 20-crore commercial paper was also assigned a P1+ rating reflecting the companys diversified product portfolio backed by strong technical expertise, access to technology and products of its parent, and relatively low financial risk.
Coates of India had its Rs 20-crore commercial paper rated as P1+ reflecting the expected sustainability of the companys strong business position in the printing inks industry, its favourable capital structure and the expected improvement in financial performance.
Fenner (India) Ltds Rs 25-crore commercial paper is also rated P1+ reflecting the companys diversified business and its strong market position in its core business of polymer and engineering divisions, as well as its fairly leveraged capital structure and improved financial performance in the first half of 1997-98.
Hero Cycles had its Rs 20-crore commercial paper rated P1+ reflecting its dominant position, strong brand franchise, high market share, favourable operating efficiency, stable profitability margins, comfortable capital structure and coverage ratios and managements competence in the bicycle industry.
The Rs 15-crore commercial paper of Merind, has been assigned a P1 rating reflecting the companys relatively strong market position in the corticosteroids segment. and its strengths in Vitamin B12 manufacture. However, these factors are partially offset by Merinds relatively low profitability, increasing gearing levels and a consequent decrease in interest coverage ratios.