 "CRISIL downgrades Mangalore Chemicals' ratings")
Rating agency CRISIL has downgraded ratings on bank facilities for Mangalore Chemicals and Fertilizers Ltd (MCFL) to "BB" from "BBB".
The rating action reflects CRISIL's belief that MCFL's operating performance and debt protection metrics will remain weak over the medium term.
The company reported negative net cash accruals in first half of 2015-16 with interest cover of less than one time.
The operating performance has weakened in 2015-16 on account of deficient monsoon in its key target market - Karnataka and tightening of energy consumption norms at its urea plant, CRISIL said in a statement.
Currently, the promoter group (United Breweries group and Zuari Fertilisers and Chemicals Ltd) holds 75.0 per cent in MCFL.
