Brickwork Ratings lowers rating of Reliance Capital

Reliance Capital Saturday said Brickwork Ratings has revised downward rating to AA for long-term debt programme, market-linked debentures and subordinated debt of the company, primarily due to delay in monetising the non-core investments.

The company remains confident to be able to monetise some of these assets over the next two quarters and bring down the debt significantly, Reliance Capital said in a filing to stock exchanges.

The rating continues to factor RCap's experienced management, well-diversified and growing business profile of companies (subsidiaries and associates) in the financial services segment, it said.

Shares of Anil Ambani-led Reliance Group's three listed companies, including Reliance Capital, witnessed a sharp decline last week following sale of pledged shares by L&T Finance and Edelweiss Group.

Lenders said that Reliance Group failed to make timely payments leading to sale of pledged shares.