ICRA downgrades Karvy Stock Broking's long-term bank lines to 'BB'

Rating agency ICRA has downgraded Karvy Stock Broking’s (KSBL) long-term bank lines from ‘BBB’ to ‘BB’ on the basis of a Securities and Exchange Board of India’s (Sebi) enforcement order.

The order is expected to impact the KSBL’s operations negatively which, in turn, would affect the debt repayment capacity of KSBL.

The rating is based on limited or no updated information on the entity’s performance since the time it was last rated in March 2019.

ICRA has been trying to seek information from the entity so as to monitor its performance. But, despite repeated requests by ICRA, the entity’s management has remained non-cooperative.