Mumbai: The Investment Information and Credit Rating Agency (ICRA) has downgraded the outstanding bonds programme of the Steel Authority of India (SAIL) from LBBB+ to LBBB, indicating moderate safety. The medium-term rating assigned to SAILs fixed-deposit programme has been retained at MA-, indicating adequate safety.

The rating action takes into account deterioration in the financial performance because of increasing pressures on realisations and the sluggish volume growth of the steel industry. This, coupled with high employee costs, has led SAIL continuing to record losses.

The retention of investment grade ratings factors in the importance of SAIL in the national economy, majority stake holding of the Indian government and its demonstrated support.