Icra downgrades McLeod Russel’s rating to ‘default’ grade

Mumbai: McLeod Russel India has said ratings agency Icra downgraded the credit rating for the long-term borrowing program of the company and also the short term rating, by many notches to default grade

Icra said after due consideration, it has revised the long-term rating from 'B-' to 'D'. The ratings agency said in a letter to the company, which the latter published in a notice to BSE.

It added the short-term rating has also been revised from ‘A4’ to ‘D’. Icra said the ratings continue to remain on “Issuer Not Cooperating” category. Separately, Mcleod Russel resubmitted its revised statement on impact of audit qualifications along with annual audited financial results to the exchange.


It has been raining downgrades and defaults for the debt-laden companies on Dalal Sreet.

Late on Tuesday, CARE assigned a 'D' or ‘default’ rating to Reliance Home Finance's Rs 400-crore non-convertible debentures (NCDs).

Last week, DHFL defaulted on unsecured commercial papers worth Rs 225 crore, Cox & Kings failed to meet debt obligations on maturing commercial papers twice, Reliance Home Finance had to refinance an NCD after failing to repay money on maturity and Sadbhav Infra earned a ‘default’ grade for special purpose vehicle.

Analysts expect more defaults in the coming months as a crippling liquidity crisis persists in the economy. They have advised investors to steer clear of companies with a high levels of debt, promoter share pledges and those with cash flow issues.