ICRA downgrades: TAJGVK Hotels & resorts

Hyderabad: Rating agency Icra has downgraded TAJGVK Hotels & Resorts Limited long-term loans and short-term credit facilities.

The low rating was on account of expected decline in revenue and margins during this financial year, the hotel chain said.

In a regulatory filing, the firm said has received a letter from Icra informing it of the "downgrade in the credit rating of the company's long-term loans (aggregating to Rs 165.63 crore) to Icra A- from Icra A and short-term credit facilities (aggregating to Rs 30 crore) to Icra A2+ from Icra A1".

The company's earnings would be weak during Q2FY21 and this trend is expected to continue over the next several quarters with continued muted demand, the rating agency said.

With sharp fall in operating profits, the debt coverage indicators are likely to deteriorate in FY21, ICRA further said.

The company's reported meagre revenues of Rs 3.3 crore and operating losses in Q1FY21 owing to the pan-India lockdown resulted in only one of its six properties apart from Taj Santacruz, which is under a JV with a GVK group company, being operational during the period.