Crisil puts Rs 9,000 cr debts of DSP Merrill Lynch under watch

Mumbai, Sep 23, 2008 (Asia Pulse Data Source via COMTEX) -- TCNYF | Quote | Chart | News | PowerRating -- Following global financial turbulence, India's credit rating agency Crisil has placed the ratings of Rs 9,000 crore debentures of DSP Merrill Lynch under watch.

"The credit rating agency has revised the credit rating of the Rs 30 billion and Rs 60 billion short term debentures P1+ and P1+(so) respectively, which signifies that the debentures are under Rating Watch with Developing Implications," debenture trustee IL&FS Trust Company today said in a statement.

Recently, US-based investment banker Merrill Lynch was taken over by the Bank of America for USD 50 billion following the crisis in the US financial sector. World's largest insurer AIG was bailed out by the US government and Lehman Brothers filed for Chapter 11 for bankruptcy protection.

As a fallout of the move, credit rating agency Fitch had also placed the Rs 1,500-crore guaranteed long-term debenture programme on Rating Watch Evolving (RWE).

DSPMLC, a wholly-owned subsidiary of DSP Merill Lynch, is engaged in asset-backed finance which involves self-originated loans as well as portfolio acquired for trading, securities- backed lending, IPO funding and proprietary trading.

DSP Merill Lynch is 90 per cent owned by US-based Merrill Lynch.

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