Credit rating agency, CARE has revised rating of Lanco Infratech’s proposed long-term Non-Convertible Debentures (NCDs) worth Rs 100 crore to ‘BB’ from ‘BBB-’. The rating agency has also revised rating of the company’s proposed Commercial Paper Programme worth Rs 100 crore to ‘A4’ from ‘A3’.
The company has received the said revised rating due to sustain deterioration in the credit risk profile of the company characterized by decline in its operational and financial performance during FY12. The rating revision also factors in its large repayment obligations and its financial commitments towards under-construction projects of the group in the near future.
Lanco Infratech is one of India’s top business conglomerates and among the fastest growing. The company has subsidiaries and divisions across a synergistic span of verticals. These include EPC, construction, power, infrastructure and property development.