Care downgrades Rs 3149 bank facilities of Unity Infraprojects to moderate safety

MUMBAI: Rating company Care has downgraded the short term and long term Rs 3149 crore banking facilities assigned to Unity Infraprojects Ltd - the infrastructure company with presence in civil construction, water, irrigation and transportation projects.The long term rating was revised by one notch which indicates moderate safety from adequate safety.

Care said the revised rating takes into account of significant debt repayment obligations in the near term, increased exposure to risky Build-Operate-Transfer (BOT) projects and its exposure to riskier real estate projects through its subsidiaries.

Care has said that company's ability to improve its credit profile by managing both its long-term and working capital financing efficiently, execute its increased order-book, efficiently manage its cash flows in light of investments required in the BOT projects, without further deterioration in the capital structure and debt service coverage indicators remain the key rating sensitivities.

The company's Rs 1103 crore long term bank facilities is downgraded from A+ (adequate safety) to BBB+ (moderate safety). Its short term facilities of rs 206 crore is downgraded from A2+ to A3+. The long/short term rating of rs 1840 crore is downgraded to BBB+/A3+ from A-/A2+

The company has an order book of Rs 4200 crore and net profit of Rs 102 crore as on March 2012.