Gati shares fell as much as 12.9% in the session before closing just off its lowsShares in Gati Ltd closed down 10 per cent on Monday after ratings agency CARE downgraded the credit rating for the logistics company, citing a drop in profitability and decline in revenue from operations.CARE cut its rating on Gati's long-term bank facilities to 'BBB' from 'A-', and downgraded short-term bank facilities to 'A3+' from 'A2+', according to a regulatory filing.Shares in Gati, which focuses on courier work, fell as much as 12.9 per cent in the session before closing just off its lows.Investors are paying closer attention to rating downgrades after the government rescued shadow banking firm Infrastructure Leasing Financial Services (ILFS), whose rapid decline spooked investors and sent the markets lower.The rating agency said Gati had raised additional debt in the fiscal year leading to higher repayment obligations in this fiscal year.The ratings agency said it was also taking account of the risk associated with support extended by Gati to a hydro power company, Gati Infrastructure.Gati said in its June quarterly report that it had extended a loan to the unit worth Rs 20.01 crore ($2.70 million), and was "confident" of recovering the funds in due course.Gati had also said it gave operational advances worth Rs 20.15 crore to parties, which is "long overdue and the full recoverability of which is doubtful".Gati said late on Monday that its "management does not envisage any risk arising from the corporate guarantee extended to Gati Infrastructure Pvt Ltd".It also said volumes and performance were expected to improve in the upcoming festive season.($1 = Rs 74.0450) Thomson Reuters 2018