Rating woes for McLeod Russel

After Eveready Industries India Ltd downgrade, a rating agency on Tuesday downgraded the rating of bulk tea major McLeod Russels India with a negative outlook.

The ICRA revised the long-term rating of McLeod Russels, part of the B M Khaitan group companies, from "A" to "BBB-" for Rs 1031 crore line of credit.

The short-term rating of the company has also been revised from "A2+" to "A3" with negative outlook on the long- term rating, the company informed the bourses.

Days before, another rating agency India Rating had downgraded the long-term credit rating for dry cell battery- maker Eveready with a negative outlook.

McLeod closed at Rs 37.85 losing 9 per cent while Eveready closed at Rs 100.70 at BSE.

Ind-Ra estimated Eveready Industries to reduce debt by Rs 130-140 crore in FY'20 to an acceptable level, which can only be achieved by the sale of its Hyderabad assets or full repayment of inter corporate deposits.

McLeod recently hived off several tea assets while, Eveready was negotiating for a strategic investor or sale to reduce group level debt to sustainable level.