Following the recent development in Satyam Computer, among other things, rating agency ICRA has downgraded various debt rating of Maytas Infra, which landed into controversy after the fiasco over the talks of a deal with the Hyderabad-based IT major.
ICRA has slashed the ratings of Rs 300-crore term loans, the Rs 263-crore fund-based limit, Rs 250-crore long-term non-convertible debenture programme and the Rs 1,983 crore non-fund based limit of Maytas Infra, by one notch.
The downgraded LBBB rating represents moderate credit rating and is one notch down from the earlier LA+ rating.
"ICRA has also noted the recent development relating to Satyam Computer Services. While assigning the rating to Maytas Infra, ICRA had taken into considerations the availability of a likely support from the group, a possibility which seems to have been seriously undermined by the recent developments," it said.
However, ICRA has taken into account the controversy leading to cancellation of Satyam Computers' plan for acquiring Maytas Infra and not yesterday's development of admission of financial wrongdoing by Satyam, the rating agency official said.
The rating agency also downgraded the rating of the company's Rs 130-crore short-term loan, by two notches from the highest grading.
Given the company's significant order book size, increased funding requirement and tight capital market conditions, Maytas Infra's liquidity has come under stress in the recent past, ICRA said.
However, ICRA said it continues to derive comfort from Maytas Infra's experienced management, its established track record in the construction industry, and its diversified operations.
