• Non convertible debenture - Rs. 2000 million Rating : AA+
• Fixed deposit programme Rating : FAAA
• Commercial paper programme - Rs. 900 million Rating : P1+

CRISIL has placed the outstanding ‘AA+’ (pronounced ‘double A plus’) ratings assigned to the Rs.2000 million NCD programme of Gujarat Ambuja Cements Ltd. (GACL) under Rating Watch with developing implications. The outstanding ‘FAAA’ (pronounced ‘F triple A’) rating assigned to the Fixed Deposit Programme and ‘P1+’ (pronounced ‘P one plus’) rating assigned to Rs.900 million Commercial Paper Programme of GACL have also been placed under Rating Watch with developing implications.

The outstanding ratings have been put on Rating Watch with developing implications in view of the company’s acquisition of 7% stake in ACC at a cost of Rs.455 crore and the company’s acquisition of the north based DLF Cements. Though CRISIL believes that these measures would help GACL consolidate its already strong business position further, these investments are large in relation to the company’s networth. CRISIL would make a detailed evaluation of the impact of the transactions upon the credit profile of the company and will announce its final view on the rating in due course.