While the rating of Apple Credit's fixed deposits and non-convertible debenture has been revised downward to `MAA-' from `MAA', fixed deposits of Wall Street Finance has been downgraded to `MA-' from `MA'.

The revised ratings in the case of Apple and Wall Street indicate `high safety' and `adequate safety' respectively. ICRA said Apple's revised rating reflects a deterioration in credit quality in terms of decline in collection performance and increase in non-performing assets, and the consequent impact on its profitability through non-recognition of income, provisioning and write-offs.

However, ICRA said the company's collections have been adequate to service debt obligations, with freshbusiness being funded out of a varied mix of cash flows from operations, bank borrowings and proceeds from debenture issue and securitisation of hire purchase receivables.

Crisil said that it has revised Gujarat Ambuja's non convertible debenture issue from AAA to AA+ due to deterioration in financial risk profile of the company due to aggressive growth over the last few years and the recent investment in the erstwhile Modi Cement Ltd. The rating also takes into account the decline in realisations in Gujarat and the export markets which accounts for 50 per cent of the company's total sales.

In the case of Wall Street, ICRA said the prospects of timely servicing of interest and principal are adequate, though debt servicing may be affected by adverse changes in business or economic conditions.

ICRA said the change in the rating of Wall Street takes into account the decline in asset quality as well as the fact that the contribution from the money changing business to the overall profitability has sharplyincreased in the recent past.

The rating agency also downgraded the ratings of the Rs 5 crore non-convertible debenture and partly convertible debenture of Pasupati Spinning and Weaving Mills Ltd from `LA-' to `LBB'. The new rating indicates `inadequate safety'.

The ratings of Pasupati have been downgraded due to adverse business prospects in the blended yarn industry, unsatisfactory performance of the company in its blended yarn and cotton yarn operations, delays in the on-going expansion projects and rising gearing levels which are expected to lead to a pressure on its debt servicing ability, ICRA said.

Moreover, due to labour trouble in the first quarter of 1998, Pasupati witnessed a loss of revenue in 1997-98. ICRA said the strained liquidity position has led to delays in meeting contractual repayment obligations.