McLeod Russel shares tumble 8.9% to Rs 37.85 after ratings downgrade

Sources said a significant part of McLeod's debt would come up for repayment in the next 3-6 months, which would keep its liquidity position under stress

McLeod Russel shares continued to be under pressure, dropping by 8.9 per cent to Rs 37.85 on the BSE, as the firm faced its second credit rating downgrade and pledging of shares by promoters increased.

While ratings agency Icra downgraded the firm’s term loans as well as fund-based bank facilities from Icra A to Icra BBB-, with a negative outlook, the non-fund based bank facilities has been revised from Icra A2+ to Icra A3. Prior to this downgrade, the ratings agency had revised credit rating and outlook on this company on April 2.

From April 2 to May 7, which coincides with