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Rating slashed to default for GMR's road project

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Abhijit Lele Mumbai
Last Updated : Sep 24 2015 | 12:39 AM IST
CARE has cut ratings for long-term loans to GMR Hyderabad-Vijayawada Expressways to default grade "D" due to delays in servicing debt and cash losses.

The total short- and long-term banks' facilities were pegged at Rs 1,768 crore. GMR Infrastructure holds 90 per cent stake in the expressways, a special purpose vehicle set up for the road project, CARE said in statement.

The rating revision from 'BBB-' to 'D' takes into account delays in servicing debt obligations. It is also facing persistent cash losses on account of lower than anticipated toll revenues. The project posted a profit after tax of Rs 92.3 crore on total operating income of Rs 153.2 core in year ended March 2015.

It had reported profit after tax of Rs 93.58 crore on operating income of Rs 145.36 crore.

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First Published: Sep 24 2015 | 12:36 AM IST

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