The downgrading is on account of the continued pressure on the company's cash flows because of discontinuation of CTV manufacturing operations and losses from other businesses. ``The decline in the scale of operations coupled with large overheads and limited margins were likely to put cash flows under pressure,'' Crisil stated.

The rating assigned to the Rs 53.74 crore fully convertible debenture (FCD) issue of Hindustan Motors Ltd has been downgraded from `A' to `BBB' by Crisil. The revision in rating was due to the increased pressure on the company's profitability and liquidity position owing to the declining automobile industry, Crisil said.

The rating continues to factor the large debt fundedcapital expenditure programme of the company, the business profile of the company's automobile division and its entry in the premium car segment where the demand is as yet uncertain. The rating assigned to Saw Pipes Ltd's belonging to the O P Jindal group -- fixed deposit programme has also been downgraded from `FAA' to `FA.