It has also put the entire debt programme of Great Eastern Shipping Company (Gesco) under rating watch `with developing implications'. The rating agency has also accorded a similar `rating watch' status to the debenture programmes of JK Corp and the non-convertible debenture (NCD) programme of Paper Products Ltd.

The rating of DLF Cement's Rs 218.50 crore NCD programme has been revised from `BB' to `D' reflecting the rating agency's concern about its difficult fund flow position which is likely to have a bearing on DLF's repayment obligations. "DLF Cement's business and financial risk profile continue to be adverse in view of the difficult market conditions, pressure on realisations, significant losses and adverse capital structure of the company," the release said

Crisil hasdowngraded the rating assigned to the fixed deposit programme of Piramal Financial Services Ltd from `FB' to `FD'. Crisil also downgraded the Rs 16.42 crore non-convertible debenture programme of Garware Polyester from `BB' to `D'. Both ratings indicate that the instrument are either in default or expected to default on maturity.

The agency release added that the Rs 143.68 crore outstanding NCDs of JK corporation (JKCL) have been put under rating watch with developing implications by Crisil in view of the company's decision to restructure its various business which includes the sale of the polyester division and the hiving off of the cement business into a separate entity. Crisil would make a detailed assessment of this restructuring exercise on the credit profile of the rated instruments and will then take a final view on the outstanding ratings, the release said.

The development in Gesco comes within days of the proposed spinning off of the company's real estate business into a new company. The ratingagency will, however, make a final announcement of Gesco's debt instruments after evaluating the impact of this demerger.

A Crisil release on Wednesday said that the ratings assigned to Gesco's short term debt, fixed deposit (FD) and non-convertible debenture (NCD) programme may change in the near future.

Meanwhile, Crisil has assigned `AAA' ratings to Gesco's Rs 100 crore and the Rs 16-crore NCD programmes, `FAAA' rating to its FD programme, and `PA1' ratings to the company's Great Eastern Gardens (phase-I) and Great Eastern Heights projects and to the Belvedere Court project being managed by Gesco on behalf of its developer Modern Mills Ltd (MML).

Gesco is the largest private sector player in the domestic shipping industry with a diversified fleet of nearly 60 vessels, and is also involved in property development. It reported a profit after tax of Rs 164 crore on a turnover of Rs 915 crore for the year ended 1997-97, the Crisil release said.

Meanwhile, Crisil has assigned `A+' rating to the Rs 5.11crore NCD programme of the Paper Products Ltd (PPL) under rating watch with developing implications. According to a Crisil release, the outstanding rating has been placed on a rating watch with developing implications in view of the in-principle understanding between royal packaging industries Van Leer NV of the Netherlands and PPL, whereby Van Leer, a world leader in packing, would take up a 51 per cent equity stake in PPL after obtaining necessary approvals and completing all formalities.