“The revision in the rating assigned to the bank loan facilities of Rs 1,151 crore of RInfra is primarily due to the deterioration in the credit risk profile and weakening of the financial/debt servicing profile of the company owing to substantial losses reported by the company during FY19. Further, some of the SPVs/subsidiaries companies rated by BWR, have delays in their debt servicing and have been downgraded to BWR D,” Brickwork said in rating rational.
BWR has moved the rating of Reliance Infrastructure Ltd. (R-Infra) to the “Issuer not Cooperating; BWR C” category from “BWR C” in Feb’19, due to non-submission of required information for the review even after consistent follow-up with the company.
Further, no information has been provided by the company as of now. In the absence of adequate information from the Company, BWR is unable to assess the Company’s overall position and its ability to service its debt in a timely manner and maintain a valid rating, it said.
The stock has tanked 18 per cent in the past three trading days, erasing nearly half of its gain of 43 per cent that was recorded after the company bagged Rs 7,000 crore Versova-Bandra Sea Link project contract from Maharashtra State Road Development Corporation (MSRDC) in Mumbai.
Besides RInfra, other stocks from the Reliance Anil Ambani Group were down 3 per cent to 8 per cent on the BSE in intra-day trade, including Reliance Naval and Engineering (down 8 per cent at Rs 3.78), Reliance Home Finance (down 7 per cent at Rs 10.98), Reliance Capital (down 7 per cent at Rs 61.20) and Reliance Power (down 3 per cent at Rs 4). In comparison, the benchmark S&P BSE Sensex was up 0.47 per cent at 39,580 points.