Brickwork downgrades Amtek NCD ratings

Brickwork Ratings has downgraded Amtek Auto's non-convertible debentures from 'C' to 'D' for delay in payment of interest on debt in October.

In August, Brickwork had cut the rating for Amtek debentures from A+ to C.

The amount of debt involved in the downgrade is Rs 484 crore. These secured debentures were issued between January and April this year and have a tenure of five years. Amtek's shares closed flat on Wednesday at Rs 45.80 on the BSE.

The rating revision reflects persisting liquidity issues in the company, leading to stress in debt servicing and a deteriorating financial risk profile. Performance is expected to be subdued in the near term. 

The promoters have infused Rs 75 crore and also plan to raise $1 billion (Rs 6,5000 crore) by selling equity in foreign businesses and some non-core businesses and industrial assets in India.