The rating assigned to MIL reflects the highly competitive refrigerator market in India, the relatively late entry of the company, leading to a low market share and the high financial risk. This was, however, offset to some extent by the strong brand equity enjoyed by the company, the high growth registered in the recent past due to reorganisation of businesses and the strong support from its parent, AB Electrolux of Sweden.

Credit Analysis & Research Ltd (Care) has downgraded the Rs 4 crore non-convertible debenture (NCD) programme of Kirloskar Pneumatic Co Ltd (KPCL) from `AA' to `A+'. The revised rating takes into account the continued weakness in the economy which has led to a demand slowdownin the user industries in some of KPCL's product categories.

KPCL, which belongs to the Kirloskar group, is a multi-product company engaged in the manufacture and marketing of various types of air and gas compressors, pneumatic tools, air-conditioning & refrigeration and transmission equipment. The company has proven technical capabilities in both detailed engineering and manufacture of these products besides a strong marketing network and brand image.

Care feels that the future prospects of the company are dependent on the turnaround in the economy which would lead to fresh investments being made in industrial and infrastructural projects resulting in strong pick-up in demand for KPCL's products.

Care has, meanwhile, assigned a PR1+ rating to the Rs 10 crore commercial paper (CP) issue of Rhone Poulenc Agrochemicals (RPAL). The company is engaged in the manufacture and marketing of speciality crop protection chemicals which are targeted at niche market segments. Care has said that the fortunes of RPALare dependent on the agricultural sector.

Crisil has assigned a `AA' rating to the fixed deposit (FD) programme of Maruti Countrywide Auto Financial Services (MCL). MCL's Rs 50 crore CP programme has been assigned a P1+ rating while a double-A- rating has been assigned to the company's Rs 100 crore debenture programme.

The rating assigned takes into account the strong parentage and the benefits derived by the company by virtue of its status as a captive finance company of Maruti Udyog Ltd (MUL). The rating also factors the low delinquencies, conservative credit appraisal processes, good systems and collection procedures. These factors are offset on account of low profitability and single business concentration in financing Maruti vehicles.