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CARE cuts SPCPL ratings following initiation of one-time loan recast

The non-repayment is despite the company having availability of liquid funds in the form of free bank balances of Rs.530 crore (excluding encumbered FDs of Rs.140 crore) and unused CP lines of Rs.400 crore at standalone level.

October 01, 2020 / 11:20 PM IST

Rating agency, CARE, has cut the ratings on certain instruments issued by Shapoorji Pallonji and Company Private Ltd (SPCPL) following non-payment of dues to lenders and the initiation of the one-time loan restructuring.

Rating on the proposed NCD issue has been cut to CARE A- from CARE A+ while rating on commercial paper has been cut to CARE A2+ from CARE A1+, the agency said in a note on September 29.

The non-payment of Rs 200 crore that was due to Union Bank of India on September 25 is not a default from the point of view of rating agency's default recognition norms, said a senior official at CARE to Moneycontrol requesting not to be named.

The non-repayment is despite the company having availability of liquid funds in the form of free bank balances of Rs.530 crore (excluding encumbered FDs of Rs.140 crore) and unused CP lines of Rs.400 crore at standalone level.