GMR, SREI Infra drop as CARE Ratings cuts ratings for long-term loans

NEW DELHI: Shares of SREI Infra Finance and GMR Infrastructure dropped up to 3 per cent in Thursday's trade after rating agency CARE Ratings downgraded the companies’ long-term loans. GMR Infra fell 3.55 per cent to hit its day’s low of Rs 13.01.

CARE Ratings has cut ratings for long-term loans to GMR Hyderabad-Vijayawada Expressways to default grade ‘D’ due to delays in servicing debt and cash losses. The total short- and long-term banks' facilities were pegged at Rs 1,768 crore.

GMR Infrastructure holds 90 per cent stake in expressways, a special purpose vehicle set up for the road project, CARE said in a statement. SREI Infra Finance fell 3.30 per cent to hit the day’s low of Rs 43.90.

The rating agency has downgraded ratings for the Kolkata-based firm's long-term bonds and debentures due to an increase in non-performing assets and restructured assets and also taking into account the subdued environment in the Indian economy, especially in the infrastructure space.

The rating for long-term infrastructure bonds has been cut from ‘AA-’ to ‘A+’ and that on unsecured bonds from ‘AA-’ to ‘A’. The total long-term bank facilities under rating were Rs 11,933 crore.