Sail, Altos downgraded

MUMBAI, January 15: Credit Rating Information Services of India Ltd Crisil has downgraded six bond programmes of Steel Authority of India Ltd Sail amounting to Rs 2,172 crore to AA-8216; from AA8217;. Crisil has also downgraded the steel major8217;s fixed deposit FD programme to FAA8217; from FAA8217;.

The premier rating agency has also downgraded the fixed deposit FD programme of Altos India Ltd from FB8217; to FD8217;. The revised rating indicates that the issue is either in default or is expected to be in default upon maturity.

It has however assigned a P18217; rating to Sail8217;s Rs 1,200 crore short-term debt plan. The revision in ratings is on account of sustained pressures on the company8217;s business lines, increase in domestic competition and imports, debt oriented funding of large modernisation programme, an increase in financial risk profile due to a severe erosion in profitability and increase in leveraging. Crisil expects continued competitive pressures in the steel industry.