Brickwork Ratings cuts rating for R-Infra's bank loan facilities
Mumbai (Maharashtra) [India], July 1 (ANI): Brickwork Ratings has downgraded the rating of Reliance Infrastructure's bank loan facilities worth Rs 1,151 crore to D from C, citing deterioration in credit risk profile.
ANI
Jul 01, 2019 11:31 IST
Mumbai (Maharashtra) [India], July 1 (ANI): Brickwork Ratings has downgraded the rating of Reliance Infrastructure's bank loan facilities worth Rs 1,151 crore to D from C, citing deterioration in credit risk profile.
Brickwork said the weakening of financial and debt servicing profile is largely due to substantial losses reported during 2018-19. Further, some of the special purpose vehicles and subsidiary companies rated by Brickwork have delays in their debt servicing and have been downgraded to BWR D.
Brickwork has moved the company's rating to 'issuer not cooperating: BWR C' category from 'BWR C" in February due to non-submission of required information for the review even after consistent follow up with the company.
"Further, no information has been provided by the company as of now. In the absence of adequate information, BWR is unable to assess the company's overall position and its ability to service its debt in a timely manner and maintain a valid rating," Brickwork said.
"Users of the aforesaid ratings (including lenders, investors and the public at large) are hence requested to be cautious while using the above ratings," it said.
"Information availability risk is a key factor in the assessment of credit risk as generally, non-cooperation by the rated entities to provide required information for a review of the assigned rating may also be accompanied by financial stress."
Reliance Infrastructure reported a loss of Rs 4,887 crore on total revenues of Rs 986 crore (standalone basis). It is a flagship company of the Reliance Group controlled by Anil Ambani.
(ANI)
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