Bharati Shipyard gets grading revision from CARE

Credit rating agency, CARE has revised rating of Bharati Shipyard’s Financial Strength Grading to ‘Grade 6’. The company has received the grading revision due to the deterioration in the financial position of the company, the on-going European crisis leading to delayed payments from the customer, delayed subsidy payment from Government of India (GOI) resulting into stressed liquidity and substantial over-utilization of the sanctioned working capital limits.

Bharati Shipyard is involved in the ship and rig building activities. Over the years, BSL upgraded itself to build tugs and sophisticated support vessels, with the latest being jack-up rigs, catering to the offshore industry. During FY11, BSL (through its subsidiaries) has acquired 51% equity stake in Tebma Shipyard limited for Rs 75.75 crore.