ICRA downgrades GMR Group's loan ratings to default grade
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Rating agency ICRA has downgraded long-term loans to GMR group's power projects to default grade "D" on delay in loan repayments.
The loans, amounting to over Rs 11,000 crore, carried "BB" rating earlier.
The projects in question are the 370 MW project in Raipur, Chhattisgarh and the 1,050 MW project at Kamalanga in Odisha.
The Chhattisgarh project involves rated loans amounting Rs 7,717 crore. The rating revision primarily takes into account the delays in debt servicing especially during construction period. The Commercial Operations Date (COD) for project has been extended from March 01, 2014 to March 31 2015, ICRA said.
The cost of the project has also increased from initial estimates of Rs 8,290 crore to Rs 11,016 crore due to delays in project execution and depreciation of the rupee, the rating agency said.
With regards to Odisha project, ICRA said GMR has not paid installments that were due in April 2015, pending the ongoing refinancing as well as stretched liquidity. It has also delayed interest servicing during the last few months. The Kamalanga project achieved the COD in March 2014. It saw cost overrun of Rs 1,979 crore from the initially budgeted cost of Rs 4,540 crore, ICRA added.
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