BackBrickwork Ratings downgrades Amtek Auto to ‘D’ rating
The rating for the NCD issues has been revised on account of delay in servicing of coupon to the debenture holders due on 1 October
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Mumbai: Rating agency Brickwork Ratings on Thursday downgraded non-convertible debentures (NCDs) worth ₹ 484 crore issued by Amtek Auto Ltd to D rating due to delays in servicing debt.
Instruments with this rating are in default or are expected to be in default.
“The rating for the NCD issues has been revised on account of delay in servicing of coupon to the debenture holders due on 1 October," said the agency.
Brickwork Ratings is the only agency that has a rating on credit facilities of Amtek Auto. Others like Care Ratings and Standard and Poor’s withdrew ratings on the company and its subsidiaries due to lack of adequate information from the company.
Last month, Amtek Auto failed to fully repay ₹ 800 crore in bond payments due on 21 September. Earlier in September, the company had said that it is in the process of selling stake in its overseas subsidiary Amtek Global Technologies Pte Ltd. Since then there have been no updates from the company.
As of March, the company had total debt of ₹ 7,844.12 crore. Amtek Auto’s interest coverage ratio, a measure of how easily firms can meet their interest costs, has slipped from 7.28 in March 2008, to as low as 0.09 times at the end of June.
Shares of Amtek Auto closed at ₹ 44.60 apiece, down 2.62%. The benchmark BSE Sensex lost 0.70% to 26,845.81 points.
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