ICRA places term loan rating of Coffee Day on watch with negative implications

Investment information firm ICRA has placed term loan rating of Coffee Day Enterprises Ltd (CDEL) on watch with negative implications.

The term loans amount is Rs 315 crore. On Tuesday, Coffee Day group's promoter V G Siddhartha had gone missing and his body was found early on Wednesday.

"The ratings have been put on watch with the negative implication (revised from watch with developing implication) as the aforesaid development may have a negative impact on the operations of CDEL, the extent of which cannot be ascertained as yet, given the nascent stage of developments," said ICRA.

"Further, as the aforementioned development may have a critical bearing on the group's operations and credit profile, ICRA will continue to monitor further developments and will finalise the rating action once more clarity emerges on the same," it added.