Credit rating agency, Credit Analysis & Research (CARE) has revised rating of Servalakshmi Paper’s long term bank facilities worth Rs 324.51 crore to ‘D’ from ‘B-’. The rating agency has also revised rating of company’s short term bank facilities worth Rs 11.50 crore to ‘D’ from ‘A4’. The revision in the ratings follows the delay in debt servicing by Servalakshmi Paper (SPL) due to the stressed liquidity position.
Servalakshmi Paper (SPL) is engaged in the business of manufacturing Newsprint (NP) and Writing & Printing Paper (WPP). SPL has paper manufacturing facilities with an installed capacity of 90,000 metric tonnes MT P.A. to manufacture Newsprint and WPP using recycled / waste paper at Kodaganallur village, Tirunelveli, Tamil Nadu. The company has also installed a 15MW captive cogeneration plant at the paper plant.
