Icra downgrades Torrent Gujarat

NEW DELHI, MAY 22: Credit rating agency ICRA today downgraded the rating assigned to Torrent Gujarat Biotech’s Rs 110 crore partly convertible debenture issue to indicate default in repayment.

The company is either already in default in payment of interest and/or principal as per terms or expected to default, and recovery is likely only on liquidation or re-organisation, ICRA said in a statement here.

The agency downgraded the rating from LBB negative grade to LD indicating default.

ICRA said the rating takes into consideration the excess supply situation existing in the Penicillin-G industry in India, which has resulted in a sharp fall in realisation in both the international and domestic markets.