India Ratings has downgraded Kalyanpur Cement Ltd’s Rs 117.3 crore zero-coupon non-convertible debentures (NCDs) to national long-term ‘IND D’ from ‘IND C’.

The downgrade reflects the cement company's delays in the repayment of the June 2012 instalments of the NCDs. The delays are as a result of the company’s weak operating performance as indicated by EBITDA losses of around Rs 45.41 crore in FY12 (FY11 losses were Rs 1.53 crore).

As to what could trigger a rating action, the rating agency has said future developments that may lead to positive rating action include regular repayment of installments for at least two quarters.

(This article was published on September 20, 2012)
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