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Journalism of Courage
MUMBAI, NOV 26: Rating firm Crisil has downgraded Pune-based Kalyani Steels to default category. The downgrade has been attributed to the mismatch between cash inflows from divestment of dominant stake in Kalyani Seamless and outflows to meet obligations on debt secured against assets leased to Kalyani Seamless, it said today.
Thus, the ratings of Rs 10 crore non-convertible debenture and Rs 46.9 crore NCDs has been revised to the lowest D category from the earlier BBB Plus. The rating shows that the instrument is in default or is expected to default on maturity. 8220;The rating reflects the inability of the company to meet its debt obligations in a timely manner,8221; it said.
The company8217;s operational cash flows are low after the spin off of its manufacturing facility into a JV and delays in full commissioning of the Hospet project. The cash flows from investments are also insufficient to meet its obligations.
