India Ratings has downgraded its rating assigned to the bank facilities of Indian government-run steel producer Rashtriya Ispat Nigam Limited (RINL) from ‘BB+’ to ‘D’ due to its delay in servicing the principals and interest payments on terms loans due on June 30, 2024, the rating agency said in a statement on Wednesday, July 10.
The instruments with ‘D’ rating are in default or are expected to be in default soon.
The rating action reflects public sector company RINL’s delay in debt servicing of its term loans of INR 4,105 million due on June 30, 2024, the agency said.
This was consistent with Ind-Ra’s Default Recognition and Post-Default Curing Period Policy. The regularization is yet to be done as on July 5, 2024, India Ratings said in a statement.
Ind-Ra continues to assess the standalone profile of the company while factoring in implicit support from the Indian government’s parentage for RINL, it said.
