PAL Credit and Capital rating downgraded

The FA minus rating assigned to the fixed deposit programme of PAL Credit and Capital (PCCL) has been downgraded to FC. The PFBBB rating assigned to the preference shares of PCCL has been withdrawn, due to their conversion into equity.

The revision in the rating reflects the continued poor performance of PCCL, its poor asset quality, and the funding constraints which are expected to adversely impact the company's ability to meet its debt obligations. PCCL has reported losses for the third consecutive year, thereby eroding its net worth significantly to Rs. 10.36 crores as of December 31, 1999. The company is primarily in the business of hire purchase financing and leasing of cars and plant and machinery.

- Corporate Bureau

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Section  : Business
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