KIOCL Limited has been informed that Brickwork Ratings India Private Limited has reviewed and subsequently downgraded and withdrawn the long-term and short-term ratings for the company's Bank Loan Facilities aggregating to ₹1,050.00 Crores. This action follows the full repayment and closure of the fund-based limits by KIOCL. The downgrade reflects a significant weakening in KIOCL's operating performance during FY25 and H1FY26, characterized by a sharp decline in revenues due to prolonged operational shutdowns and subdued export demand. This led to continued operating and net losses, deteriorating profitability indicators and negative debt coverage metrics. Consequently, the long-term rating for fund-based facilities and the short-term rating for non-fund-based facilities were downgraded. The ratings were then withdrawn upon KIOCL's request, supported by a No Due Certificate and No Objection Certificate from the lender. Despite these challenges, KIOCL maintains a strong support from the Government of India, experienced management, and a healthy capital structure with zero external debt in FY25. Liquidity remains strong with substantial cash and equivalents. The company is also developing the Devadari iron ore mine to secure raw material supply and reduce costs. However, the company faces challenges from a high cost structure, sustained operating losses, pellet price volatility, and an intense competitive industry environment. Environmental and social compliance risks are also noted.