BPL: rating downgraded

The ratings assigned to the various outstanding non-convertible debenture programmes of BPL (BPL) have been downgraded to A plus (A plus) from AA minus (double A minus).

The rating assigned to the Rs. 100 crore commercial paper programme of BPL has been downgraded to P1 (P one) from P1 plus (P one plus). The rating assigned to the fixed deposit programme of the company has also been downgraded to FA plus from FAA minus (F double A minus).

The revision in ratings is on account of weakening financial risk profile of the company as reflected in a significant increase in its gearing, deterioration in cash flow protection measures and pressure on its liquidity position. This is primarily on account of the unanticipated (significant) increase in BPL's working capital requirements, increased investments in group companies and current slowdown in the industry.

- Corporate Bureau

Send this article to Friends by E-Mail

Section  : Business
Previous : GMAC-TCFC Finance gets AAA
Next     : Managing in gloomy times