Vodafone Idea drops after rating downgrade

Vodafone Idea lost 3.84% to Rs 36.30 at 12:09 IST on BSE after a rating agency downgraded its rating on the company's non-convertible debentures.

The announcement was made after market hours yesterday, 29 November 2018.

Meanwhile, the S&P BSE Sensex was up 43.03 points, or 0.12% to 36,213.44

On the BSE, 32.54 lakh shares were traded in the counter so far compared with average daily volumes of 40.57 lakh shares in the past two weeks. The stock had hit a high of Rs 37.75 and a low of Rs 36 so far during the day. The stock hit a 52-week high of Rs 118 on 5 January 2018. The stock hit a 52-week low of Rs 32.55 on 8 October 2018.

Vodafone Idea informed that CRISIL has downgraded its rating on Non-Convertible Debentures of Rs 6000 crore and has re-affirmed its rating on CP Programme of Rs 2000 crore of erstwhile Vodafone Mobile Services (VMSL), which has since been migrated to Vodafone Idea (the company) pursuant to amalgamation of VMSL with the company.

The rating of Non-Convertible Debentures has been downgraded to CRISIL A+ (Negative Outlook) from existing CRISIL AA- (Negative Outlook). However, the rating for commercial paper programme has been kept unchanged at CRISIL A1+.

On a consolidated basis, Vodafone Idea reported net loss of Rs 4973.80 crore in Q2 September 2018 as against net loss of Rs 1106.60 crore in Q2 September 2017. Net sales rose 2.48% to Rs 7646.70 crore in Q2 September 2018 over Q2 September 2017.

Vodafone Idea (formerly Idea Cellular) is India's leading telecom service provider. The company provides voice and data services on 2G, 3G and 4G technologies across 22 service areas.

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