The rating on long-term bank facilities assigned was CARE D downgraded from previous rating of CARE BB with negative outlook. The short-term bank facilities has got rating of CARE D downgraded from previous rating of CARE A4.
The company shared in a regulatory filing on Thursday that CARE has downgraded the ratings assigned to long term and short term bank facilities on the following reasons
1. Due to disruption in the operations owing to the outbreak of Covid-19 pandemic, liquidity profile of the company weakened resulting in delays in debt servicing;
2. The liquidity position is delicately poised due to high working capital utilization;
3. Working capital intensive nature of operations and cyclical nature of auto sector.