Rationale

 ICRA has downgraded and continued to keep the bank loan ratings for S M Steels in the ‘Issuer Not Cooperating’ category. The current rating is denoted as “[ICRA]BB- (Stable)/[ICRA]A4 ISSUER NOT COOPERATING”. The rating downgrade is because of lack of adequate information regarding S M Steels performance and hence the uncertainty around its credit risk. ICRA assesses whether the information available about the entity is commensurate with its rating and reviews the same as per its “Policy in respect of non-cooperation by a rated entity” available at www.icra.in. The lenders, investors and other market participants are thus advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity, despite the downgrade. The rating is based on limited cooperation from the entity since the time it was last rated in March 2023. As part of its process and in accordance with its rating agreement with, ICRA has been trying to seek information from the entity so as to monitor its performance and has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite multiple requests by ICRA, the entity’s management has remained non-cooperative. In the absence of requisite information and in line with the aforesaid policy of ICRA, a rating view has been taken on the entity based on the best available information.