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CARE reaffirms ratings of Spanco’s bank facilities

28 Jan 2014 Evaluate

Credit rating agency, CARE has reaffirmed ‘D’ rating to Spanco’s Long-term bank facilities worth Rs 485 crore. The rating agency has reaffirmed ‘D/D’ rating to the company’s Long-term/Short-term bank facilities worth Rs 588.50 crore. The rating agency has also reaffirmed ‘D’ rating to the company’s Non-Convertible Debentures (NCD) worth Rs 92 crore.

The company has received the said rating on the back of its ongoing delays in servicing the debt obligations due to the weakened liquidity position. The rating also factors in the reference made by the company to the Corporate Debt Restructuring (CDR) Cell for the restructuring of its debt under the CDR mechanism.

Spanco is a leading networking and system integration service provider in India. Spanco changed its business profile from a telecom system integrator to that of creating technology infrastructure to help drive governance efficiency across the key sectors like government, power, transport and telecom. Spanco also operates in the Business Process Outsourcing segment providing services both in the domestic as well as the international markets.

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