May 17, 2019 / 9:55 AM / 3 months ago

CARE ratings for Indian debt instruments-May 17

    May 17 (Reuters) - Below are the ratings awarded by Credit Analysis and Research Ltd. (CARE)
for local debt instruments as of May 16, 2019.


COMPANY                               INSTRUMENT         RATING        AMOUNT   MOVEMENT
                                                                       (RS.MLN)
-------                               ----------         ------        -------  ---------
SHORT TERM RATINGS:
-------------------
Anjani Food Products Pvt Ltd          ST Bk Fac          CARE A4        15      -
(Issuer not cooperating)
A.V. Valves Ltd                       ST Bk Fac          -              -       Withdrawn
Bank Of Baroda                        CD ^               CARE A1+       250000  Assigned
^Transferred from erstwhile Vijaya Bank to Bank of Baroda consequent to amalgamation into Bank
of Baroda
Best It World Pvt Ltd                 ST Bk Fac          CARE A4+       1450    Revised from
                                                                                CARE A3
Ekcon Infra Projects                  ST Bk Fac          CARE A4        30      Revised from
                                                                                CARE A4
(Issuer not cooperating)
Htl Ltd                               Fund Based - ST –  CARE A2+       400     Assigned
                                      Bk Overdraft
Htl Ltd                               Non Fund Based -   CARE A2+       500     Assigned
                                      STLC/BG
Jai Gurudev Food Product              ST Bk Fac          CARE A4        10      Assigned
Kargwal Constructions Pvt Ltd         ST Bk Fac          CARE A4        180     Assigned
Tata Teleservices (Maharashtra) Ltd   CP Issue           CARE A1+       90000   -
(Continues on Credit Watch with Developing Implications)
Tata Teleservices Ltd                 CP Issue           CARE A1+       130000  -
(Continues on Credit Watch with Developing Implications)
M/S Birendra Prasad Singh             ST Bk Fac          -              -       Withdrawn
Skypoint Multitrade Pvt Ltd           ST Bk Fac          CARE D         100.5   -
(Issuer not cooperating)

LONG TERM RATINGS:
-------------------
Asf Insignia Sez Pvt Ltd              LT Bk Fac          Provisional    1100    Assigned
                                                         2)CARE BBB-
                                                         (SO)3)
2) The above ratings are provisional and will be confirmed once the company submits copies of
final sanction letters to the satisfaction of CARE.
3) The above rating is based on structured payment mechanism including the escrow account for
the receivables, presence of DSRA equivalent to 3 months of interest and principle servicing as
well as cross collateralization of properties and receivables of both ASF and Kings Canyon SEZ
Pvt Ltd.
A.V. Valves Ltd                       LT Bk Fac          -              -       Withdrawn
A.V. Valves Ltd                       Long/ST Bk Fac     -              -       Withdrawn
Ahmedabad Maliya Tollway Ltd          NCD issue @        CARE AA        1750    Revised from
                                                                                CARE AA
@ Backed by unconditional and irrevocable Sponsor Support Undertaking and Put Option agreement
on the NCDs provided by L&T Infrastructure Development Projects Limited (LTIDPL; rated ‘CARE AA;
Positive’).
Anjani Food Products Pvt Ltd          LT Bk Fac          CARE BB-       110     -
(Issuer not cooperating)
Bank Of Baroda                        Additional Tier I  CARE AA        15000   Reaffirmed
                                      Bonds (Basel III
                                      compliant)@@
@@CARE has rated the aforesaid Basel III Compliant Additional Tier-I Bonds after taking into
consideration its key features as mentioned below: 
The bank has full discretion at all times to cancel coupon payments. 
The coupon is to be paid out of current year profits. However, if the current year’s profits are
not sufficient, i.e., payment of such coupon is likely to result in losses during the current
year, the balance of coupon payment may be made out of revenue reserves and/or credit balance in
profit and loss account provided the bank meets the minimum regulatory requirements for Common
Equity Tier I [CET I], Tier I and Total Capital Ratios and capital buffer frameworks as
prescribed by the Reserve Bank of India      .
The instrument may be written-down upon CET I breaching the pre-specified trigger of 5.5% before
March 31, 2019, and 6.125% on and after March 31, 2019, or written-off / converted into common
equity shares on occurrence of the trigger event called point of non-viability (PONV). The PONV
trigger shall be determined by RBI. Any delay in payment of interest/principal (as the case may
be) due to invocation of any of the features mentioned above would constitute as an event of
default as per CARE’s definition of default and as such these instruments may exhibit a somewhat
sharper migration of the rating compared with other subordinated debt instruments.
Bank Of Baroda                        Additional Tier I  CARE AA        20000!  Reaffirmed
                                      Bonds (Basel III
                                      compliant)@@
@@CARE has rated the aforesaid Basel III Compliant Additional Tier-I Bonds after taking into
consideration its key features as mentioned below: 
The bank has full discretion at all times to cancel coupon payments. 
The coupon is to be paid out of current year profits. However, if the current year’s profits are
not sufficient, i.e., payment of such coupon is likely to result in losses during the current
year, the balance of coupon payment may be made out of revenue reserves and/or credit balance in
profit and loss account provided the bank meets the minimum regulatory requirements for Common
Equity Tier I [CET I], Tier I and Total Capital Ratios and capital buffer frameworks as
prescribed by the Reserve Bank of India      .
The instrument may be written-down upon CET I breaching the pre-specified trigger of 5.5% before
March 31, 2019, and 6.125% on and after March 31, 2019, or written-off / converted into common
equity shares on occurrence of the trigger event called point of non-viability (PONV). The PONV
trigger shall be determined by RBI. Any delay in payment of interest/principal (as the case may
be) due to invocation of any of the features mentioned above would constitute as an event of
default as per CARE’s definition of default and as such these instruments may exhibit a somewhat
sharper migration of the rating compared with other subordinated debt instruments.
! Includes green shoe option of Rs.1,000 crore
Bank Of Baroda                        Additional Tier I  CARE AA        13250   Assigned
                                      Bonds (Basel III
                                      compliant)^@@
^Transferred from erstwhile Vijaya Bank to Bank of Baroda consequent to amalgamation into Bank
of Baroda.
@@CARE has rated the aforesaid Basel III Compliant Additional Tier-I Bonds after taking into
consideration its key features as mentioned below: 
The bank has full discretion at all times to cancel coupon payments. 
The coupon is to be paid out of current year profits. However, if the current year’s profits are
not sufficient, i.e., payment of such coupon is likely to result in losses during the current
year, the balance of coupon payment may be made out of revenue reserves and/or credit balance in
profit and loss account provided the bank meets the minimum regulatory requirements for Common
Equity Tier I [CET I], Tier I and Total Capital Ratios and capital buffer frameworks as
prescribed by the Reserve Bank of India      .
The instrument may be written-down upon CET I breaching the pre-specified trigger of 5.5% before
March 31, 2019, and 6.125% on and after March 31, 2019, or written-off / converted into common
equity shares on occurrence of the trigger event called point of non-viability (PONV). The PONV
trigger shall be determined by RBI. Any delay in payment of interest/principal (as the case may
be) due to invocation of any of the features mentioned above would constitute as an event of
default as per CARE’s definition of default and as such these instruments may exhibit a somewhat
sharper migration of the rating compared with other subordinated debt instruments.
Bank Of Baroda                        Upper Tier II      CARE AA+       25000   Reaffirmed
                                      Bonds (Basel II)@
@ CARE has rated the aforesaid Upper Tier II Bonds and Perpetual Bonds one notch lower than the
Lower Tier II Bonds / Tier II Bonds (Basel III compliant) in view of their increased
sensitiveness to the Bank of Baroda’s Capital Adequacy Ratio (CAR), capital raising ability and
profitability during the long tenure of the instruments. The rating factors in the additional
risk arising due to the existence of the lock in clause in hybrid instruments. Any delay in
payment of interest/principal (as the case may be) following the invocation of the
lock-in-clause, would constitute as an event of default as per CARE’s definition of default and
as such these instruments may exhibit a somewhat sharper migration of rating compared to
conventional subordinated debt instruments.
Bank Of Baroda                        Perpetual Bonds    CARE AA+       16115   Reaffirmed
                                      (Basel II)@
@ CARE has rated the aforesaid Upper Tier II Bonds and Perpetual Bonds one notch lower than the
Lower Tier II Bonds / Tier II Bonds (Basel III compliant) in view of their increased
sensitiveness to the Bank of Baroda’s Capital Adequacy Ratio (CAR), capital raising ability and
profitability during the long tenure of the instruments. The rating factors in the additional
risk arising due to the existence of the lock in clause in hybrid instruments. Any delay in
payment of interest/principal (as the case may be) following the invocation of the
lock-in-clause, would constitute as an event of default as per CARE’s definition of default and
as such these instruments may exhibit a somewhat sharper migration of rating compared to
conventional subordinated debt instruments.
Bank Of Baroda                        Perpetual Bonds    CARE AA+       1250    Assigned
                                      (Basel II) #
#Transferred from erstwhile Dena Bank to Bank of Baroda consequent to amalgamation into Bank of
Baroda
Bank Of Baroda                        Tier II Bonds      CARE AAA       25000*  Reaffirmed
                                      (Basel III
                                      compliant)&
& Tier II Bonds under Basel III are characterized by a ‘Point of Non-Viability’ (PONV) trigger
due to which the investor may suffer a loss of principal. PONV will be determined by the Reserve
Bank of India (RBI) and is a point at which the bank may no longer remain a going concern on its
own unless appropriate measures are taken to revive its operations and thus, enable it to
continue as a going concern. In addition, the difficulties faced by a bank should be such that
these are likely to result in financial losses and raising the Common Equity Tier I capital of
the bank should be considered as the most appropriate way to prevent the bank from turning
non-viable
* Includes green shoe option of Rs.1,750 crore
Bank Of Baroda                        Tier II Bonds      CARE AAA       11800   Assigned
                                      (Basel III)#&
#Transferred from erstwhile Dena Bank to Bank of Baroda consequent to amalgamation into Bank of
Baroda. 
& Tier II Bonds under Basel III are characterized by a ‘Point of Non-Viability’ (PONV) trigger
due to which the investor may suffer a loss of principal. PONV will be determined by the Reserve
Bank of India (RBI) and is a point at which the bank may no longer remain a going concern on its
own unless appropriate measures are taken to revive its operations and thus, enable it to
continue as a going concern. In addition, the difficulties faced by a bank should be such that
these are likely to result in financial losses and raising the Common Equity Tier I capital of
the bank should be considered as the most appropriate way to prevent the bank from turning
non-viable.
Bank Of Baroda                        Lower Tier II      CARE AAA       12000   Assigned
                                      Bonds (Basel II) #
#Transferred from erstwhile Dena Bank to Bank of Baroda consequent to amalgamation into Bank of
Baroda
Bank Of Baroda                        Tier II Bonds      CARE AAA       17000   Assigned
                                      (Basel III)^&
^Transferred from erstwhile Vijaya Bank to Bank of Baroda consequent to amalgamation into Bank
of Baroda
& Tier II Bonds under Basel III are characterized by a ‘Point of Non-Viability’ (PONV) trigger
due to which the investor may suffer a loss of principal. PONV will be determined by the Reserve
Bank of India (RBI) and is a point at which the bank may no longer remain a going concern on its
own unless appropriate measures are taken to revive its operations and thus, enable it to
continue as a going concern. In addition, the difficulties faced by a bank should be such that
these are likely to result in financial losses and raising the Common Equity Tier I capital of
the bank should be considered as the most appropriate way to prevent the bank from turning
non-viable.
Best It World Pvt Ltd                 LT Bk Fac          CARE BB+       800     Revised from
                                                                                CARE BBB-
Bhoday Steel Rolling Mills            LT Bk Fac          CARE B+        50      Assigned
Dena Bank                             Tier II Bonds      -              -       Withdrawn
                                      (Basel III
                                      compliant)
Dena Bank                             Lower Tier II      -              -       Withdrawn
                                      Bonds - Series XI
Dena Bank                             Lower Tier II      -              -       Withdrawn
                                      Bonds – Series XII
Dena Bank                             Perpetual Bonds    -              -       Withdrawn
Dena Bank                             Tier II Bonds      -              -       Withdrawn
                                      (Basel III
                                      compliant)
Ekcon Infra Projects                  LT Bk Fac          CARE B         60      Revised from
                                                                                CARE B+
(Issuer not cooperating)
Esko Die Casting Pvt Ltd              LT Bk Fac          CARE BBB+      115     Assigned
Happy Home Corporation                LT Bk Fac          CARE D         3852    Revised from
                                                                                CARE BB+
(ISSUER NOT CO-OPERATING)
Hasten Extrusions Pvt Ltd             LT Bk Fac          CARE BB-       54.2    Assigned
Htl Ltd                               Fund Based - LT -  CARE A-        300     Assigned
                                      TL
Jai Gurudev Food Product              LT Bk Fac          CARE B+        50      Assigned
Kargwal Constructions Pvt Ltd         LT Bk Fac          CARE BB        70      Assigned
Lavanya Purefood Pvt Ltd              LT Bk Fac          -              -       Withdrawn
M/S Birendra Prasad Singh             LT Bk Fac          -              -       Withdrawn
Maa Tara Rice Mills                   LT Bk Fac          CARE BB-       112.5   Assigned
N.G.Bhoir                             LT Bk Fac          -              -       Withdrawn
Neccon Foods Pvt Ltd                  LT Bk Fac          CARE BB-       150     Assigned
Parshwanath Agritech Llp              LT Bk Fac          CARE B+        134.7   Assigned
Samunnati Financial Intermediation AndSeries A1 PTC      CARE A         199     Final Rating
Services Pvt Ltd - Northern Arc 2019                                            Assigned
Dora
Samunnati Financial Intermediation AndSeries A2 PTC      CARE BBB       15.5    Final Rating
Services Pvt Ltd - Northern Arc 2019                                            Assigned
Dora
Saraf Agencies Pvt Ltd                LT Bk Fac          CARE BB-       971.8   Assigned
Saraf Agencies Pvt Ltd                Long /ST Bk Fac    CARE BB-/A4    550     Assigned
Saraf Real Infra Pvt Ltd              LT Bk Fac          -              -       Withdrawn
Shree Balaji Agro Farm Industries Pvt LT Bk Fac          -              -       Withdrawn
Ltd
Skypoint Multitrade Pvt Ltd           LT Bk Fac          CARE D         84.8    -
(Issuer not
 cooperating)
Vijaya Bank                           Basel III Tier II  -              -       Withdrawn
                                      Bonds^
^Transferred consequent to amalgamation with Bank of Baroda.
Vijaya Bank                           Basel III          -              -       Withdrawn
                                      Additional Tier I
                                      Bonds^
^Transferred consequent to amalgamation with Bank of Baroda.
Vijaya Bank                           CDs^               -              -       Withdrawn
^Transferred consequent to amalgamation with Bank of Baroda.
Kings Canyon Sez Pvt Ltd              LT Bk Fac          Provisional    6550    Assigned
                                                         2)CARE BBB-
                                                         (SO)3)
2) The above ratings are provisional and will be confirmed once the company submits copies of
final sanction letters to the satisfaction of CARE.
3) The above rating is based on structured payment mechanism including the escrow account for
the receivables, presence of DSRA equivalent to 3 months of interest and principle servicing as
well as cross-collateralization of properties and receivables of both Kings Canyon SEZ Pvt Ltd.
(KC) and ASF Insignia SEZ Pvt Ltd (ASF)

--------------------------------------------------------------------------------------------
$: Rating watch with positive implication
#: Rating Watch with Developing implications
@: Rating Watch with Negative Implications
%: Rating under Credit Watch
wd -Rating Stands Withdrawn
sp -Rating Suspended
pp -Principal Protected
pn -Principal Not Protected

CARE may apply + or - signs for ratings to reflect a comparative standing within the category.

BG-Bank Guarantee; CC-Cash Credit; CCPS-Cumulative Convertible Preference Share; CD-Certificate
of Deposit; CLO-Collateralized Loan Obligation; CPA-Claims Paying Ability; CP-Commercial
Paper; CPS-convertible preference shares; CRPS- Cumulative Redeemable Convertible Preference
shares; DDB-Deep Discount Bond; EPBI-Exchange premium bond; FBL-Fund Based Limits; FRB/FRN
-Floating Rate Bond/Note; ICD -Inter Corporate Deposit; ITD-Immediate Term Debt; LOC-Letter of
Credit; LT -Long Term; LTB -Long Term Borrowing; LTD -Long Term Debt; MOCD-multiple option
convertible debenture; MTD -Medium term Debenture; MTN-medium term notes; NCD(SO) -
Non-Convertible Debenture-(Structured Obligation); NCD-Non-convertible Debentures; NCRB-Non
Convertible Redeemable Bonds; NM-Not Meaningful; OCD-optionally convertible debenture; OD-Over
Draft; OFCD-Optionally Fully Convertible Debenture; PCD-Partially Convertible Debenture;
PCN-partly convertible notes; PCPS-Partly Convertible Preference Share; POCD-partly optional;
PP-privately placed; PSPC-Post Shipment & Packing Credit; PS-Preference Shares; PTC-Pass
Through Certificates; RPS-Redeemable Preference Shares; SCPN-secured convertible preference
notes; SDO-Structured Debt Obligation; SLR-Statutory Liquidity Ratio; SO-Structured
Obligation; SPCD - Secured Partly Convertible Debentures; SPN-secured premium notes; STB-Short
Term Bond; STD-Short Term Debentures; ST-Short Term; Sub. Bonds-Subordinate Bonds; TB-Taxable
Bond; TFB-Tax Free Bond; TL-Term Loan; TOCD-triple option convertible debentures.

(Mumbai Rate Reporting Unit + 91 22 6180 7222/3317 7222, E-mail at rru.data@thomsonreuters.com)
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