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ICRA has withdrawn ratings assigned to the borrowing programme of MEP Infrastructure Developers . The agency has withdrawn the rating for the company's bank limit of ₹50 crore.
MEP made the disclosure to the stock exchanges saying, this was due to slower than anticipated progress in the six under-construction Hybrid Annuity Mode (HAM) road portfolio.
HAM model was approved by the government to increase the pace of award and construction of national highways apart from de-risking the developers and lenders from inherent shortcomings associated with conventional Build Operate and Transfer.
Also read:MEP Infra secures over ₹1,400-cr for 3 ‘hybrid annuity’ road projects
The ratings agency stated that MEP’s non-fund based limits of ₹50 crore has been downgraded to ICRA A4+ from 3 and subsequently withdrawn, the filing said.
At 11.30 am, MEP shares were trading at ₹27.25, or 8.75 per cent lower.
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