Care downgrades India Cements

MUMBAI, DEC 14: Credit Analysis and Research Ltd (CARE) has downgraded the rating of India Cements’ non- convertible debenture issue from `AA’ to `AA-‘. Heavy borrowings for part funding its acquisitions (Raasi Cements and Vishnu Cements) has increased the debt equity ratio of ICL from 1.02 as on March 31, 1997 to 1.85 as on March 31, 1999, Care said in a statement here today. The overall gearing has also increased from 1.15 to 2.21 during the same period while increased financing costs led to a decline in interest coverage ratio from 1.47 times in fiscal 1998 to 1.26 times in fiscal 1999, it added.