S&P lowers Future Retail's issuer credit rating from 'B-' to 'CCC-'

Operating cash-flows to stay weak for two months

Rating agency Standard & Poor’s has lowered Future Retail Ltd’s long-term issuer credit rating from 'B-' to 'CCC-' as its liquidity position has weakened by the extended lockdown in India due to COVID-19.

The ratings remain on CreditWatch with negative implications to reflect the company's weakening debt-servicing ability. Future Retail or its related entities are likely to restructure its debt within the next few months. Its operating cash flows are likely to remain weak over the next two months.

The ratings on Future Retail remain preliminary because the cross-guarantees between Future Retail and group company Future Enterprises Ltd have not been fully