India Ratings & Research (Ind-Ra) has assigned Shriram EPC (SEPC) a long-term issuer rating of 'BB'. The outlook is stable. The ratings reflect the approval of SEPC's corporate debt restructuring (CDR) package, under which the existing irregularities have been converted into long-term loans, a moratorium on interest and principal payments has been granted and fresh funds have been sanctioned.

The ratings also reflect the inflow of Rs 2.1 billion through equity from its promoter, Shriram Industrial Holdings (SIHL). While the company was required to bring in only Rs 1.6 billion under the CDR package, it has already brought in excess equity of INR500m. Both SEPC and SIHL are part of the Shriram group, a Chennai-based financial services and industrial conglomerate.

SEPC has received a moratorium on interest payments till March 2016 on all loans except the cash credit facility, fresh term loan and funded interest term loan. Repayments on the term loans will start from June 2016. The interest during the moratorium period is being funded through a funded interest term loan facility. The company has also received a fresh term loan sanction of Rs 1.25 billion to facilitate its immediate liquidity needs and support its long-term working capital requirement.

Shares of the company gained Rs 0.5, or 1.43%, to trade at Rs 35.50. The total volume of shares traded was 10,867 at the BSE (2.11 p.m., Thursday).