CARE Ratings has downgraded credit ratings of various debt instruments of Bhushan Steel to “D” or default, citing continuing delays in the debt servicing by the company.
The agency lowered the credit rating of Bhushan Steel’s long-term bank facilities, working capital, short-term loans as well as subordinate debt from “BB” and “A4”, while reaffirmed rating of company’s two non-convertible debenture programmes, to “D”. In all, total bank facilities worth R35,960 crore were downgraded.
Nitin Johri, CFO, Bhushan Steel, said the downgrade virtually has no impact on the company as it is not planning to raise fresh funds through instruments like debentures. “Bankers are already aware of company’s financial standing and are taking corrective measures through joint lenders’ forum,” added Johri.