MUMBAI, January 15: Credit Rating Information Services of India Ltd (Crisil) has downgraded six bond programmes of Steel Authority of India Ltd (Sail) amounting to Rs 2,172 crore to `AA-' from `AA'. Crisil has also downgraded the steel major's fixed deposit (FD) programme to `FAA' from `FAA+'.The premier rating agency has also downgraded the fixed deposit (FD) programme of Altos India Ltd from `FB+' to `FD'. The revised rating indicates that the issue is either in default or is expected to be in default upon maturity.
It has however assigned a `P1+' rating to Sail's Rs 1,200 crore short-term debt plan. The revision in ratings is on account of sustained pressures on the company's business lines, increase in domestic competition and imports, debt oriented funding of large modernisation programme, an increase in financial risk profile due to a severe erosion in profitability and increase in leveraging. Crisil expects continued competitive pressures in the steel industry.
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