Rating firm Credit Analysis and Research Ltd (CARE) has downgraded Jaiprakash Associates Ltd’s total bank loan facilities and long-term non-convertible debentures (NCDs) worth Rs 29,303.40 crore to ‘D’ rating on delay in servicing of debt and poor liquidity.
CARE says instruments with D rating are in default or are expected to be in default soon.
The company’s bank loans worth Rs 25,280.07 crore and long-term NCDs worth Rs 4,023.33 crore were assigned D rating.
Jaiprakash Associates, in a stock exchange filing, said it has made suitable representation to the rating agency for a review. Jaiprakash shares fell by 9.3 per cent to Rs 10.52 on the BSE.
CARE said on account of deterioration in the company’s financial performance and delay in receipt of funds through monetization of assets as well as debt management exercise, the liquidity position of the company has been affected, leading to delays in debt servicing by the company. In 2014-15, Jaiprakash Associates reported net loss of Rs 1,110 crore on a total operating income of Rs 10,854 crore on a stand-alone basis.