Altico Capital, backed by private equity investors, missed on payments on external commercial borrowings (ECBs). It defaulted on interest payment of Rs 19.97 crore on ECBs it had availed from Mashreqbank PSC. The gross principal amount was Rs 347 crore.
India Ratings downgraded the rating of Altico to ‘IND A+/A1(negative)’ from ‘IND AA-/A1+’(stable).
This rating downgrade led to acceleration triggers on some of the outstanding borrowings of the company, leading to creation of asset-liability mismatch in the near term.
The company continues to remain well capitalised with net worth of Rs 3,108 crore as of June 30, and capital adequacy of 43 per cent.
Net gearing of the company is less than 1.5 times as of June 30.
The reported gross non-performing asset (GNPA), according to the last management mail, is 1.8 per cent.