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RAPAPORT... The CRISIL Ratings agency downgraded the short-term bank facilities of Winsome Diamonds & Jewellery Ltd. to ''CRISIL D'' from ''CRISIL A4/Rating Watch with Negative Implications.'' CRISIL listed Winsome's total credit facilities at $715 million (INR 38.5 billion). The revised rating reflected the 30 consecutive days the company has been in arrears in servicing credit obligations, with CRISIL stating that delays have been caused by Winsome Group’s weakening liquidity due to a plunge in receivables since March. CRISIL said that prior to March, Winsome's customers had been paying regularly. The diamond firm continues to address debt restructuring with its lenders and deal with customers to improve its receivables, according to the ratings firm. CRISIL determined that Winsome has large working capital requirements, a high degree of customer concentration in its revenue profile and exposure to intense competition in the domestic and export jewelry markets that is resulting in low profit margins. But the weakened outlook was partially offset by the extensive experience of the Winsome Group’s promoters in the gems and jewelry industry, according to CRISIL. CRISIL combined the business and financial risk profiles of Winsome, its subsidiaries -- Su-Raj Diamonds NV, Su-Raj Diamonds & Jewelry USA Inc., Su-Raj Diamonds & Jewellery DMCC and Su-Raj Diamond (HK) Ltd. -- and its group companies, Su-Raj Diamond Industries Ltd. and Forever Precious Jewellery and Diamonds Ltd., to determine the rating.
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