Emco Energy downgraded to ‘D’

“The downgrade reflects EEL’s delay in debt servicing based on publicly available information. The management reports that the loans are being refinanced. Ind-Ra would monitor and take an appropriate rating action, once the documents are made available by the company,” Ind-Ra said in a statement. “Timely debt servicing for three consecutive months will be positive for the ratings,” Ind-Ra said.

Emco Energy is a special purpose vehicle, incorporated to build, maintain and operate a 600 MW coal-fired subcritical technology-based thermal power plant in Warora, Maharashtra. GMR Energy Ltd is the primary sponsor of the project with 100 per cent equity investment. GMR Energy is an operating-cum-holding company for all the power and coal mining assets in India and abroad of GMR Infrastructure.

CARE had earlier this week revised ratings of GMR Infrastructure’s bank facilities of Rs 3,355.22 crore and non-convertible debentures of Rs 867.5 crore downward to BBB.