Crisil downgrades Lloyds Steel to default category

MUMBAI, March 11: Credit Rating Information Services of India Ltd (Crisil) has downgraded the rating on Lloyds Steel Industries Ltd’s deep discount bonds to D’ from C’. The revised rating indicates that the instrument is in default or is expected to default on maturity.

In January, Crisil lowered the rating on the bonds to C’ from BBB’ due to the continued deterioration in credit quality because of poor profitability in the steel business. “The rating of Lloyds Steel Industries Rs 9.753 crore deep discount bond has been downgraded from C to D,” Crisil said.

Lloyds Steel is one of the leading steel makers in the country. The company has been facing tough times following sluggish demand for steel products and reduced margins.

Lloyds Steel Industries’s cash losses were Rs 33.7 crore during the half-year ended September 1997, Crisil said at the time of downgrading the company to default category. The company was expected to make further cash losses during the remaining months of 1997-98(April-March), Crisil added in its release.