Fitch downdrades Wockhardt's long-term rating

Rating agency Fitch has downgraded the rating of drug firm Wockhardt following the firm's announcement of corporate debt restructuring.

Besides, another rating agency Crisil downgraded the rating of short-term debt programme of the drug maker following a default by Wockhardt in interest payment on a loan.

Fitch downgraded Wockhardt's national long-term rating to B from BBB. 'B' rating signifies high default risk.

"The rating action follows Wockhardt's announcement of a corporate debt restructuring programme in light of adverse market condition, liquidity constraints and debt burden," Fitch said.

Crisil downgraded the rating on pass through certificates (PTCs) to P5 from P4 and has placed the rating on 'Rating Watch with negative implications' based on its expectation of shortfalls and delays by Wockhardt in meeting its obligation on the loans.

"The downgrade by the rating agency Crisil follows a default by Wockhardt on the interest payment on the loan supporting pass through certification (PTC)," Crisil said.

PTCs are mortgage-backed security certificates in which owners' payments pass from the original bank through a government agency or an investment bank to investors.