India Ratings and Research (Ind-Ra) has downgraded IVRCL's long-term issuer rating to 'IND D' from 'IND B+'. The outlook was stable.

The downgrade reflects IVRCL's non-payment of interest due to banks on the cash credit facilities during August and September 2015. The default was mainly due to the non-release of funds approved under the corporate debt restructuring (CDR) package by certain banks.

Under the CDR package, approved in June 2014, IVRCL was to receive a fresh term loan (termed priority loan) of RS 1.75 billion to clear statutory and employee dues and kick-start execution, of which only Rs 750 million was released by FYE15. This resulted in revenue being much below expectations at Rs 31.17 billion as against the target of Rs 57.28 billion under the CDR package and EBITDA losses.