Tata Iron & Steel Company Ltd and Larsen & Toubro Ltd are planning to tap the debt market after the credit policy and have had their issues totalling Rs 400 crore and Rs 700 crore, respectively, rated by Crisil.
The Rs 100-crore non-convertible debenture (NCD) issue of Tisco has been assigned a AAA rating while its Rs 300 crore commercial paper programme (CP) has been rated PR1+.
The rating reflects the company's strong market position, good operating efficiency, lower costs and takes into cognisance that it is part of the Tata group of companies.
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The Rs 250 crore non-convertible debenture issue of Larsen & Toubro has also been rated AAA and its Rs 450 crore CP has been given a PR1+ rating. Crisil has reaffirmed the AAA rating to the existing NCD's of L&T.
The rating factors in the company's diversified revenue stream, strong business position and the advantages arising from a strong professional management set up. These positives are paltry offset by the implementation risks associated with the company's ongoing cement projects and the move to adopt an increased level of gearing to maintain its competitive position.
Crisil has downgraded the Rs 36 crore optionally convertible debenture issue of Southern Iron and Steel Company Ltd from BBB+ to BB+ because of increase in project risk arising out of large time and cost overruns.
The uncertainties faced by the issuer could lead to inadequate capacity to make timely interest and interest payments.
The Rs 50 crore commercial paper programme of Wockhardt Ltd has been rated P1+ indicating that the degree of safety regarding timely payment of the instrument is very strong.
Crisil has upgraded the rating of the non-convertible debenture issue of Ion Exchange (India) Ltd from A to A+ and assigned a P1 rating to its CP programme.
The revision is based on the improved financial risk profile of the company due to stable accruals in the backdrop of a decline in the overall debt.
These are partially offset by high working capital intensity and low margins in some of its other businesses. The A rating to the existing NCD and PCD issue of Atlas Cycle has been reaffirmed.
Crisil has assigned a AAA(so) rating to the pass through certificates issued by Peoples' Financial Services Ltd (the issuer) under the Asset Backed Securities programme of Citibank NA. for securitising a pool of auto loan receivables originated by Citibank in ties normal course of operations.
The rating is based on the strength of the cash flows, selection of contracts, the mechanisms designed to ensure full and timely payments, credit cum liquidity support provided by Citibank and the integrity of the legal structure and the warranties provided by the bank.