The company's outstanding fixed deposit (FD) rating has also been downgraded to `FA-' from `FA+'.

The rating revision arises out of the continuing negative outlook of the company's paper business due to sustained market pressure on realisations, limited financial flexibility due to a highly leveraged capital structure, fairly large ongoing capital expenditure programme and debt repayment obligations, Crisil said in a statement here today.

In Crisil's opinion, credit protection measures would remain weak on account of the company's absolute debt usage levels, including foreign exchange borrowings which continue to remain extremely high in relation to cash generation from operations.

BILT, however in a release, said ``Crisil should have takeninto account the successful implementation of the restructuring of the company which has strengthened the capital structure, improved operating profitability and cash flow generation of the company. BILT has also provided for an additional source of cash flow from the sale of non-strategic investments and real estate.''

BILT was exploring possibilities of infusing further capital to fund growth plans, it said.