Credit rating agency ICRA has downgraded the rating of Maharashtra Seamless’ long term bank facilities worth Rs 718.5 crore to ‘AA-’ from ‘AA’
The downward revision is due to weakness in operating performance on account of lower demand of Oil Country Tubular Goods (OCTG) due to sharp decline in crude oil prices and increasing competition from Chinese players and risks related to guarantees extended by the Company to its subsidiaries and associate concerns.
Maharashtra Seamless is engaged in the business of manufacturing pipes and tubes. The company also manufactures ERW pipes and seamless pipes. Its ERW plant is capable to manufacture ERW Pipes up to 21' Outer Diameter (OD) becoming the first and only plant in India.
