The flagship company of Shapoorji Pallonji Group, the single-largest shareholder in Tata Sons, had its debt downgraded on Thursday by a domestic rating agency.
The Rs 19,600-crore debt across multiple instruments of Shapoorji Pallonji and Company Private Limited (SPCPL) has been downgraded to BBB+/A2 from A- (with a stable outlook)/ A2+, and placed on rating watch with developing implication, according to a statement.
The delay in securing the requisite working capital limits, which has impacted the engineering, procurement and construction (EPC) operations in FY23, is resulting in modest profitability and muted debt coverage metrics, Icra said.
Its line of credit was put to restricted use as a part of the One Time Restructuring (OTR) plan in March 2022, which constrained order execution in FY23, it said, adding timely sanction of adequate working capital limits remains critical to support the growth in core operations in the medium term.
The 'Watch with Developing Implications' ..
