Shares of IT services firm Rolta came under heavy selling pressure today, falling by over 8 per cent following concerns over rating downgrade.
The stock dived 8.30 per cent to settle at Rs 71.80 on BSE. During the day, it dropped 9 per cent to Rs 71.25.
At NSE, it plunged 8.54 per cent to close at Rs 71.75.
On the volume front, 6.21 lakh shares of the company changed hands at BSE and over 27 lakh at NSE during the day.
S&P Global Ratings has lowered its long-term corporate credit rating on Rolta India to 'CCC-' from 'B+'.
B rating indicates that the obligor currently has the capacity to meet its financial commitment on the obligation whereas CCC rating means the obligation is currently vulnerable to non-payment and is dependent on favourable business, financial and economic conditions.
S&P Global Ratings has also lowered long-term issue rating to 'CCC-' from 'B+' on senior unsecured notes issued by Rolta Americas and Rolta.
"We lowered the rating on Rolta because the company missed a USD 6.8 million interest payment on its 10.75 per cent 2018 unsecured notes. We are also uncertain of the company's ability to meet its interest payment," S&P Global Ratings credit analyst Ashutosh Sharma said.
The payment was due on May 16, 2016.
"We understand that Rolta intends to make the payment within the 30-day grace period ending June 15, 2016. However, we do not have any information on the company's current liquidity position, which seems to have unexpectedly deteriorated," he said.
