Credit rating agency, Credit Analysis & Research (CARE) has revised rating of Andhra Cements’ long term bank facilities worth Rs 877 crore to ‘D’ from ‘BBB-’. Further, the rating agency has also revised rating of company’s short term bank facilities worth Rs 50 crore to ‘D’ from ‘A3’. The revision in the ratings of the bank facilities of Andhra Cement (ACL) takes into account delay in servicing of debt obligations by the company due to its weak liquidity position.
Andhra Cements has cement manufacturing facilities at Dachepalli, Guntur District (Durga Cement Works) with a split grinding unit at Visakhapatnam, Andhra Pradesh (Visakha Cement Works). Jaypee Group, through Jaypee Development Corporation (JDCL, a wholly owned subsidiary of Jaypee Infra Ventures) acquired controlling stake in ACL in February 2012 from its earlier promoters, Duncan Goenka Group.
