The Hindu Business Line : ICRA downgrades Falcon Tyres, HMT

ICRA has downgraded Falcon Tyres Ltd's Rs 5-crore commercial paper programme to A2+ indicating high safety in short term from A1, an ICRA news release said.

The rating revision takes into account the current supply overhang in the domestic two-wheeler tyre industry leading to pricing pressure, firm price trend in rubber and the company's relatively high overheads, the release added. The rating also takes into account the company's inadequate funding levels leading to increased strain on its liquidity. However, the rating considers the company's operational capabilities and strong relationships with original equipment manufacturers.

In another development, ICRA has downgraded HMT Ltd's Rs 159-crore bond issue to LBB (SO) (under rating watch) from LAAA (SO). The downgrade follows a delay in interest payment due on these bonds as on April 1.

More Stories on : Credit Rating | Corporate Bonds

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