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ICRA retains GAIL debt, downgrades Ramco
New Delhi, Mar 12: Credit rating agency ICRA today retained highest safety `LAAA` rating of Gas Authority India Ltd`s Rs 500 crore debt and downgraded Ramco super leathers` Rs 34 crore debentures to `MD` indicating default grade.
New Delhi, Mar 12: Credit rating agency ICRA today retained highest safety "LAAA" rating of Gas Authority India Ltd's Rs 500 crore debt and downgraded Ramco super leathers' Rs 34 crore debentures to "MD" indicating default grade.
The "laaa" rating on Gail's Rs 500 crore non-convertible debenture issue was reaffirmed considering the PSU's strong market position in gas transmission and distribution, strong financial position and low level of risks.
ICRA, however, warned that in the long run, Gail would have assume the "pricing risks" associated with marketing of natural gas.
"Further, Gail would also have to devise an appropriate pricing strategy to market LNG, which it is likely to off-take from Petronet LNG project of which it is one of the principal sponsors," ICRA said in a release.
In another rating exercise, ICRA downgraded Ramco Super Leathers Ltd (RSLL) Rs 34 crore medium term non-convertible debentures from "MB" to default grade "MD".
It also downgraded the Rs 3.0 crore debenture of RSLL following the merger of RSL industries with the company.
"The revised rating factors the default in payment of interest by Ramco Super Leathers to investors in its non-convertible debenture programme," ICRA said.
RSLL's efforts to realign itself to domestic markets and undertake financial restructuring will be time intensive and would not result in improved cash flows in the short term, ICRA said, adding "The company's ability to service its debt obligation as per terms will continue to be hampered."
Bureau Report
The "laaa" rating on Gail's Rs 500 crore non-convertible debenture issue was reaffirmed considering the PSU's strong market position in gas transmission and distribution, strong financial position and low level of risks.
ICRA, however, warned that in the long run, Gail would have assume the "pricing risks" associated with marketing of natural gas.
"Further, Gail would also have to devise an appropriate pricing strategy to market LNG, which it is likely to off-take from Petronet LNG project of which it is one of the principal sponsors," ICRA said in a release.
In another rating exercise, ICRA downgraded Ramco Super Leathers Ltd (RSLL) Rs 34 crore medium term non-convertible debentures from "MB" to default grade "MD".
It also downgraded the Rs 3.0 crore debenture of RSLL following the merger of RSL industries with the company.
"The revised rating factors the default in payment of interest by Ramco Super Leathers to investors in its non-convertible debenture programme," ICRA said.
RSLL's efforts to realign itself to domestic markets and undertake financial restructuring will be time intensive and would not result in improved cash flows in the short term, ICRA said, adding "The company's ability to service its debt obligation as per terms will continue to be hampered."
Bureau Report