India Ratings downgrades ABG Shipyard's Rs 200 crore NCD to default

MUMBAI: India Ratings has downgraded ABG Shipyard's Rs 200 crore non-convertible debenture (NCD) issue to default rating, citing delayed repayments.

The rating has been cut to 'IND D' from 'IND BB-'. The 'IND D' ratings are assigned to entities or financial commitments which are currently in default, according to the definition available on the website.

"The rating action has been triggered by the fact that the due date for redemption of the NCDs has expired and there is still part principal amount outstanding as on date," India Ratings said in a statement.

The rating agency also downgraded the company's Long-Term Issuer Rating to 'IND D' from 'IND BB-', and said the outlook was negative.

India Ratings said ABG Shipyard had been facing tight liquidity for the past year, hurt by delays in receiving milestone linked payments from clients.

ABG Shipyard is engaged in the business of carrying shipbuilding and ship repair business.