Financial Daily from THE HINDU group of publications
Thursday, Jul 14, 2005
Financial Daily from THE HINDU group of publications Thursday, Jul 14, 2005 |
|
|
|
|
|
Corporate
-
Credit Rating Crisil sees steady ratings scenario Our Bureau
Kolkata , July 13 CRISIL has predicted a steady ratings scenario for the rest of the year, despite pressure building up on corporate profitability because of escalating commodity prices. The agency, which has lately recorded 18 upgrades and only two downgrades across the spectrum, expects the buoyancy in the manufacturing sector to continue, thanks to measures taken by companies in recent times to increase efficiency, reduce operating costs and rationalise manpower. Crisil, said Ms Roopa Kudva, Chief Rating Officer, hopes to see stability in ratings in the days ahead. This, she added, is significant in the context of rising prices of oil and steel - inputs that play critical roles for the corporate sector. "While commodity prices are certainly on the rise, companies are largely displaying strong balance sheets," she stated with reference to the agency's views on the nature of corporate performance that is likely to be seen. Crisil, which maintains that manufacturing and financial sector ratings will pose no immediate problems, is also of the view that the infrastructure sector may well throw up a few challenges. Assessments of SMEs/SSIs are quickly assuming a bigger role insofar as Crisil's ratings are concerned, it is pointed out. The agency now proposes to rate small-scale units in association with NSIC. The fees for this rating are currently subsidised by the Government. On Wednesday, Crisil tied up with UCO Bank in Kolkata. An SSI customer of the bank (which hopes to augment its SSI portfolio by around Rs 1,000 crore this year) will be able get a Crisil rating at a comparatively low rate, a measure that is ultimately expected to increase the flow of credit to the small-scale sector. The agency, Ms Kudva said, is positive on SSI ratings, thanks to banks' increased focus on lending to the sector. It is now trying to beef up its market intelligence mechanism with a view to cater more to the small-scale segment. Crisil, on another front, is trying to push the concept of corporate governance (CG) ratings. It has so far rated 50 companies; however, not more than 10 have accepted/disclosed its ratings. It is not in favour of mandatory CG ratings, despite some feelers sent by the market regulator in the past on the matter.
Crisil turns trainer
Crisil has identified `executive training' as a niche business, one that is expected to emerge into a full-fledged revenue stream in course of time. The rating agency, which has over the years started businesses as diverse as infrastructure advisory and financial news dissemination, has already started conducting training programmes in a selective manner. The move, it is pointed out, is based on feedback recently given by some of Crisil's clients. The latter are said to have requested Crisil to share the experience it has gained over the years, courtesy its interaction with issuers, government agencies, regulators and the like. The programmes conducted so far cover important case studies that have been worked out by the agency. "We hope to turn this into more than a niche affair," Ms Kudva said.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|