Long term rating is revised to D from B- and short term rating revised to D from A4 by ICRA, the company said.
Mcleod Russel India shares fell 5 percent intraday on July 4 after ICRA downgraded credit rating to default for borrowings worth Rs 1,031.09 crore.
Long term rating is revised to D from B- and short term rating revised to D from A4 by ICRA, the company said.
"The ratings continue to remain in the Issuer Not Cooperating category owing to non-submission of no default declaration. The ratings will be due for surveillance any time before July 31, 2019," it added.
ICRA said the rating revision factors in company's recent delays in meeting debt obligations in a timely manner. ICRA, in its earlier releases, had highlighted the continued pressure on the liquidity profile of the company owing to high financial exposure to weak group companies, which was largely funded by short-term debt, thus exposing the company to significant refinancing risks.
McLeod Russel India reported an operating income of Rs 1,719.7 crore with a net profit of Rs 38.8 crore during FY2019 as against an operating income of Rs 2,055.1 crore and a net profit of Rs 219.20 crore during FY2018 on a consolidated basis.
The total debt has significantly increased on account of high exposure to weak group companies, which has been largely funded by short-term debt, ICRA said.
The stock was quoting at Rs 13.55, down Rs 0.70, or 4.91 percent on the BSE at closing.India Union Budget 2019: What does Finance Minister Nirmala Sitharaman have up her sleeve? Click here for top and latest Budget news, views and analyses.
