Credit Analysis & Research (CARE) yesterday, 23 July 2015, announced that it has downgraded the rating to CARE D or default for Jaiprakash Associates' bank loans worth Rs 25280.07 crore and long-term non-convertible debentures (NCDs) worth Rs 4023.33 crore. The revision in the ratings of the bank facilities and instruments of Jaiprakash Associates (JAL) takes into account delay in servicing of debt obligations by the company due to its weak liquidity position, CARE said on its website. On account of deterioration in the company's financial performance and delay in receipt of funds through monetization of assets as well as debt management exercise, the liquidity position of the company has been impacted, leading to delays in debt servicing by the company, CARE said.

Jaiprakash Associates said that the company has made suitable representation to the rating agency for a review of the rating.

Jaiprakash Associates (JAL) is the flagship company of the Jaypee group and is engaged in engineering and construction, cement, real estate and hospitality businesses.