Gujarat Lease Financing rating downgraded

ICRA has downgraded the ratings assigned to the fixed deposit programme of Gujarat Lease Financing (GLFL) from MB to MC indicating risk prone. It has also downgraded the non-convertible debenture programme from LBB to LC indicating substantial risk.

The downgradation reflects the sharp fall in business volumes over the last two financial years, the high level of provisions and write-offs that have impaired profitability and eroded the net worth. Poor recoveries have resulted in reduced debt servicing ability. The company has been unable to service its bank debt. The company has also stopped making fresh disbursements since last financial year.

- Corporate Bureau

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Section  : Business
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