Mumbai, March 4 -- The rating agency has downgraded Gensol's long-term bank facilities of Rs 639.70 crore from CARE BB+ (Stable) to CARE D, and its long-term/short-term bank facilities of Rs 76.30 crore from CARE BB+ (Stable) / CARE A4+ to CARE D / CARE D. This downgrade indicates a substantial increase in the perceived risk of default on the company's debt obligations.

CARE Ratings cited ongoing delays in the servicing of Gensol's term loan obligations as the primary reason for the downgrade. Reports from lenders indicate overdue payments and SMA classification of the company's accounts. The rating agency assessed Gensol's liquidity as "poor," further contributing to investor apprehension.

Despite the severe downgrade, Gensol Engineeri...