SME Times News Bureau | 23 Nov, 2020
Brickwork Ratings India Pvt Ltd
has downgraded the ratings for SREI Infrastructure Finance's perpetual
debt instrument aggregating to Rs 10 crore.
It has also placed the ratings under credit watch with negative implications.
Ratings India Pvt Ltd (Brickwork) has revised the ratings for Perpetual
Debt Instrument aggregating to Rs 10 crore of the company," SREI
Infrastructure Finance said in a regulatory filing on Sunday.
statement, Brickwork Ratings said that it has downgraded the "long-term
ratings of the company on the innovative perpetual debt instrument to
'BWR BB' from 'BWR BBB-/Negative' while placing the ratings under credit
watch with negative implications".
It said that the rating
downgrade is mainly driven by continued stress on asset quality in the
equipment and infrastructure financing loan portfolios, significant
decline in profitability and stretched liquidity position of the company
on account of low collections.
"BWR has also taken note that the
company has restructured the coupon payments of perpetual debt
instruments by taking the consent of the investors prior to the due date
in line with RBI guidelines," it said.
On Friday, SREI
Infrastructure Finance had informed the exchanges that a special audit
of the company and its subsidiary, Srei Equipment Finance Ltd is being
undertaken by an auditor appointed by the Reserve Bank of India (RBI).