Ceat Financial defaults

Ceat Financial defaults
ENS ECONOMIC BUREAU

MUMBAI, MAR 8: After DCL Finance, one more finance company -- Ceat Financial Services of the RPG group -- has defaulted and downgraded by rating agencies. Fitch Ratings India has downgraded the fixed deposit ratings of Ceat Financial Services from `Ind BB minus' to default grade `Ind DD' indicating that the issuer had failed to meet debt obligations like scheduled principal and interest payments.

A statement issued by Fitch said that although the company maintained that it remained committed to met all the fixed deposit liabilities, timely payment of matured papers were affected. Total outstanding along with interest accrued as on September 30, 2000, stood at Rs 146.6 crore.

Fitch also suspended the ratings of the fixed deposit programme of J&N Financial Services Limited as the company had not provided information necessary for monitoring of rating.

The FD programme of the company was rated `Ind CCC' by Fitch. Fitch had also suspended the ratings of Ideal Financing Corporation Ltd and withdrew that of Sibar Finance Ltd on company's request.