Mumbai, Brickwork Ratings India Pvt Ltd has downgraded the ratings for SREI Infrastructure Finance's perpetual debt instrument aggregating to Rs 10 crore.

It has also placed the ratings under credit watch with negative implications.

"Brickwork Ratings India Pvt Ltd (Brickwork) has revised the ratings for Perpetual Debt Instrument aggregating to Rs 10 crore of the company," SREI Infrastructure Finance said in a regulatory filing on Sunday.

In a statement, Brickwork Ratings said that it has downgraded the "long-term ratings of the company on the innovative perpetual debt instrument to 'BWR BB' from 'BWR BBB-/Negative' while placing the ratings under credit watch with negative implications".

It said that the rating downgrade is mainly driven by continued stress on asset quality in the equipment and infrastructure financing loan portfolios, significant decline in profitability and stretched liquidity position of the company on account of low collections.

"BWR has also taken note that the company has restructured the coupon payments of perpetual debt instruments by taking the consent of the investors prior to the due date in line with RBI guidelines," it said.

On Friday, SREI Infrastructure Finance had informed the exchanges that a special audit of the company and its subsidiary, Srei Equipment Finance Ltd is being undertaken by an auditor appointed by the Reserve Bank of India (RBI).