Ind-Ra downgrades Sterling and Wilson Renewable Energy in ‘default’ grade
India Ratings (Ind-Ra) has downgraded Sterling and Wilson Renewable Energy Ltd’s (SWREL) bank facilities from “BB-” to “D” due to delays in servicing its debt obligations in September 2023 caused by its weakened liquidity position.
The ratings have been removed from “Rating Watch with Negative Implications.”
Ind-Ra highlighted concerns that the company’s operating cash flows would not be adequate to address its upcoming debt obligations in October 2023. This liquidity crunch was exacerbated by the activation of bank guarantees at SWREL’s overseas subsidiary, Sterling and Wilson Solar Solutions Inc.
