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India Ratings downgrades ABG Shipyard's Rs 200-cr NCD programme

Agency also lowers company's long-term issuer rating

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Aditi Divekar Mumbai
Last Updated : Oct 03 2013 | 8:27 PM IST
India Ratings & Research has downgraded ABG Shipyard Ltd's Rs 200 crore non-convertible debenture programme to 'IND D' from 'IND BB-' earlier, citing delayed payments.

Alongside, the agency has also downgraded ABG Shipyard's long-term issuer rating to 'IND D', it said today.

The downgrade reflects ABG Shipyard's delays in repayments pertaining to the Rs 200 crore non-convertible debenture programme, said the agency.

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The rating action has been triggered by the fact that the due date for redemption of the NCDs has expired and there is still part principal amount outstanding as on date. The NCD issue is the only debt instrument of the company rated by the agency, said India Ratings.

ABG Shipyard had been experiencing tight liquidity for the past year, triggered by delays in receiving milestone linked payments from clients.

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First Published: Oct 03 2013 | 8:25 PM IST

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