CRISIL cuts rating of Jindal Steel and Power Limited

CRISIL has cut both the short-term and long-term rating of Jindal Steel and Power Limited (JSPL) to CRISIL D from CRISIL A4+ and CRISIL BB+ respectively. JSPL has issued a statement clarifying that the reduction in its credit rating merely represents a rating downgrade on technical grounds and that it had met all its financial commitments till November-December 2015. The company is exploring various options with lenders to reschedule payments. Debt worth Rs 326.38 billion has seen a lowered rating. This includes Rs 141.99 billion of term loans and Rs 68.6 billion of short-term and long-term bank loan facilities. The rating downgrade was on account of delays by JSPL in interest payments on its term loans, due to weak liquidity.

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