New Delhi, Jun 7 (PTI) Mercator today said that CARE Ratings has revised its rating for long-term bank facilities due to decline in scale of operations and incurrence of losses during 2017-18 fiscal.

"Care Ratings Ltd (CARE) has revised company's rating for long term bank facilities to 'CARE BBB' (CARE Triple B) and for short term bank facilities to 'CARE A3' (CARE A Three)," the shipping firm said in a BSE filing.

As per CARE, the ratings have been revised on account of decline in scale of operations and incurrence of losses during financial year 2017-18 and lower than expected cash accruals.

"This is mainly on account of disruptions in the coal operations for around five months of FY18 as well as weak performance of dredging segment. The debt coverage indicators are also expected to be moderate in the medium term," the statement said. The company said that the coal operations commenced in February 2018 and have reached optimum levels in April 2018.

"The ratings of the company continue to derive strength from long track record of the company along with experienced promoters and management, its diversified revenue profile and moderate capital structure," the statement added.

CARE further said that the outlook may be revised to 'stable' once the oil production commences and adds to the overall profitability.

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