Shri Ishar Alloy downgraded to default

8220;The company has been badly hit by power cuts and increasing power tariffs like other alloy steel manufacturers which has eroded its operating margins,8221; it said.

Meanwhile, ICRA, another rating agency, has downgraded the long-term rating assigned to the Rs 18.36 crore partially convertible debenture programme and the Rs 10 crore non-convertible debenture programme of Surya Roshni Ltd to LA8217; from LAA8217;.

The agency expects the debt servicing capacity to be under pressure in futurebecause of sizeable repayment commitments. The rating was downgraded due to decline in the profitability and debt servicing capacity of the company. The operating margins of the company had declined during 1996-97 due to higher selling expenses.