Crisil downgrades Essar Shipping to deafault

Crisil downgrades Essar Shipping to deafault

OCT 5: Credit Rating Information Servicesof India Ltd (Crisil) has downgraded the ratings for the Rs 75.1 crore and Rs 78.6 crore non-convertible debenture (NCD) programmes of Essar Shipping Ltd.

The downgrade rating took into account slowdown in tractor demand growth which resulted in lower capacity utilisation, increased pressures on margins and higher working capital intensity which has adversely affected the company's profitability, ICRA said. This coupled with increased level of borrowings wouldweaken the coverage indicators in the medium term for Escorts, it said.