Credit rating agency, CARE has reaffirmed ‘D’ rating to Gammon India’s Long-term bank facilities worth Rs 949.05 crore. The rating agency has also revised rating of company’s Long-term/Short-term bank facilities worth Rs 10,355 crore to ‘D’ from ‘C/A4’. The rating agency has also reaffirmed ‘D’ rating to the company’s Non-Convertible Debenture Issue worth Rs 324 crore.
The ratings assigned to the bank facilities and instrument of Gammon India (GIL) have been revised/reaffirmed owing to delays in servicing of interest on non-convertible debentures, over-drawals in fund-based limits and devolvements in non-fund-based limits. The liquidity position of the company is constrained due to delays in recoveries from customers, project execution delays resulting in holding of high inventory, thereby blocking working capital funds and causing cost-overruns.
Gammon India provides engineering services and construction of services. It operates in plan, design and undertakes construction of roads, highways, bridges and other projects.
| Company Name | CMP |
|---|---|
| Larsen & Toubro | 4022.15 |
| Rail Vikas Nigam | 307.25 |
| NCC | 163.75 |
| KEC International | 588.90 |
| Kalpataru Projects | 1261.10 |
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