MUMBAI, July 9: Credit rating agencies have downgraded the debt instruments of Shalimar Paints Ltd (SPL), Thapar Milk Products, Mukerian Papers Ltd, Vindhya Telelinks, Magma Leasing and Hindustan Adhesives Ltd.

ICRA has downgraded the rating of the PCD programme of SPL to LBBB(-) from LBBB (+). The revised rating indicates moderate safety. SPL has been unable to capitalise on the buoyancy in the paint market and its competivite position has weakened. Crisil has downgraded the rating of Thapar Milks' PCD to `D' from `C' and Mukerian Papers to `BB' from `BBB+' while Credit Analysis & Research Ltd (Care) has downgraded the non-convertible portion of Vindhya Telelinks Ltd's Rs 29.6 crore PCD issue from `AA+' to `AA'.

CARE has also downgraded the ongoing fixed deposit programme of Magma Leasing Ltd and Hindustan Adhesives Ltd from `AA' to `AA-' and from `A' to `BB' respectively. Thapar Milk's rating of `D' indicates substantial risk of timely payment of interest and principal. The revised rating indicates that the debentures are in default. The downgrading of Mukerian Papers' PCD to `BB' indicates inadequate safety of timely payment of interest and principal. Vindhya Telelinks' FD programme has also been downgraded, from AA+ to AA, upto a limit of Rs 12 crore. On the downgrading of the FD rating of Magma Leasing to AA-, a CARE note states that "instruments carrying this rating are judged to be of high quality by all standards."

The FD programme of Hindustan Adhesives has been placed under BB grading, indicating that the instruments are speculative.

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