InfraBuild is in danger of breaching its agreement with lenders within three months unless the steel business owned by British industrialist Sanjeev Gupta improves its earnings, according to Fitch Ratings.

But the credit ratings agency said there was “limited potential” for earnings to improve given the increase in cheap steel imports, largely from China, downgrading the company to CC. That rating indicates that Fitch believes there are very high credit risks and default “appears probable”.