Icra downgrades McLeod to default in fourth rating action since April

Move follows recent delays in meeting debt obligations and comes on heels of firm's annual results and auditor's concerns on its ability to continue as a going concern

Rating agency Icra has downgraded McLeod Russel India's ratings on Rs 1,031 crore fund-based and non-fund based bank facilities to "default" or "D" category from B-/A4.

Icra said that the rating revision factored in McLeod's recent delays in meeting debt obligations.

The rating action - the fourth since April - comes close on the heels of McLeod's annual results and the concerns raised by auditor Deloitte Haskins & Sells LLP on the company's ability to continue as a going concern. 

According to Deloitte, the Williamson Magor Group company's liabilities exceeded assets by Rs 1,435.66 crore as on March 2019 and