Insilco Ltd

• Partly Convertible Debenture - Rs. 300 million Rating : A-

A ‘A-’ (pronounced single A minus) rating has been assigned to the proposed Rs. 300 million zero-coupon partly convertible debenture issue of Insilco Limited (Insilco).

The adequate safety rating primarily factors in the business and financial support from Insilco’s parent - Degussa-Huls AG, a leading player in the international silica industry. The rating also takes into account the company’s dominant position in the domestic precipitated silica industry and comfortable capital structure and interest coverage ratios. The rating is constrained by the size of domestic silica industry, over-capacity situation in the industry, and proposed investment towards acquisition of an existing silica unit.

Insilco, a 68% subsidiary of Degussa-Huls AG of Germany, is engaged in the manufacture and sale of precipitated silica. For the year ended March 31, 1999, Insilco reported net profits of Rs. 45.8 million on an operating income of Rs. 459.5 million.