InvestorQ : What is happening in Reliance Capital? Why has it been downgraded?
Gauravi Patel made post

What is happening in Reliance Capital? Why has it been downgraded?

Answer
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nishi Shah answered.
1 year ago


Rating agencies CARE Ratings and ICRA downgraded Reliance Capital because two of its arms – Reliance Home Finance (RHFL) and Reliance Commercial Finance (RCFL) - have delayed bank loan repayments. CARE Ratings cut RHFL’s rating to D for default from BBB+ as the company failed to repay bank loans on time. An analyst at the company said: There has been rescheduling of repayment in one of the bonds issued by RCFL. Other instruments downgraded have high risk of default given the weakening of the credit profile of the companies. CARE also downgraded an RCFL nonconvertible debenture (NCD) series worth Rs 200 crore to D from BBB+ on which there has been a mutually agreed deferment in repayments. Payments due on April 19 have been deferred to September. Besides, the rating company has downgraded various NCDs/other credit facilities mostly to C (junk status) from BBB+.

ICRA revised its ratings for Anil Ambani-led Reliance Capital and its subsidiaries from A2 to A4 with negative implications.

"The ratings continue to be on watch with negative implications," said ICRA, adding that this reflects slow pace of monetisation of Reliance Capital's non-core investments (non-financial services businesses) and consequently no improvement in liquidity.


user profile image
nishi Shah answered.
1 year ago


Rating agencies CARE Ratings and ICRA downgraded Reliance Capital because two of its arms – Reliance Home Finance (RHFL) and Reliance Commercial Finance (RCFL) - have delayed bank loan repayments. CARE Ratings cut RHFL’s rating to D for default from BBB+ as the company failed to repay bank loans on time. An analyst at the company said: There has been rescheduling of repayment in one of the bonds issued by RCFL. Other instruments downgraded have high risk of default given the weakening of the credit profile of the companies. CARE also downgraded an RCFL nonconvertible debenture (NCD) series worth Rs 200 crore to D from BBB+ on which there has been a mutually agreed deferment in repayments. Payments due on April 19 have been deferred to September. Besides, the rating company has downgraded various NCDs/other credit facilities mostly to C (junk status) from BBB+.

ICRA revised its ratings for Anil Ambani-led Reliance Capital and its subsidiaries from A2 to A4 with negative implications.

"The ratings continue to be on watch with negative implications," said ICRA, adding that this reflects slow pace of monetisation of Reliance Capital's non-core investments (non-financial services businesses) and consequently no improvement in liquidity.


user profile image
nishi Shah answered.
1 year ago


Rating agencies CARE Ratings and ICRA downgraded Reliance Capital because two of its arms – Reliance Home Finance (RHFL) and Reliance Commercial Finance (RCFL) - have delayed bank loan repayments. CARE Ratings cut RHFL’s rating to D for default from BBB+ as the company failed to repay bank loans on time. An analyst at the company said: There has been rescheduling of repayment in one of the bonds issued by RCFL. Other instruments downgraded have high risk of default given the weakening of the credit profile of the companies. CARE also downgraded an RCFL nonconvertible debenture (NCD) series worth Rs 200 crore to D from BBB+ on which there has been a mutually agreed deferment in repayments. Payments due on April 19 have been deferred to September. Besides, the rating company has downgraded various NCDs/other credit facilities mostly to C (junk status) from BBB+.

ICRA revised its ratings for Anil Ambani-led Reliance Capital and its subsidiaries from A2 to A4 with negative implications.

"The ratings continue to be on watch with negative implications," said ICRA, adding that this reflects slow pace of monetisation of Reliance Capital's non-core investments (non-financial services businesses) and consequently no improvement in liquidity.


user profile image
nishi Shah answered.
1 year ago


Rating agencies CARE Ratings and ICRA downgraded Reliance Capital because two of its arms – Reliance Home Finance (RHFL) and Reliance Commercial Finance (RCFL) - have delayed bank loan repayments. CARE Ratings cut RHFL’s rating to D for default from BBB+ as the company failed to repay bank loans on time. An analyst at the company said: There has been rescheduling of repayment in one of the bonds issued by RCFL. Other instruments downgraded have high risk of default given the weakening of the credit profile of the companies. CARE also downgraded an RCFL nonconvertible debenture (NCD) series worth Rs 200 crore to D from BBB+ on which there has been a mutually agreed deferment in repayments. Payments due on April19 have been deferred to September. Besides, the rating company has downgraded various NCDs/other credit facilities mostly to C (junk status) from BBB+.

ICRA revised its ratings for Anil Ambani-led Reliance Capital and its subsidiaries from A2 to A4 with negative implications.

"The ratings continue to be on watch with negative implications," said ICRA, adding that this reflects slow pace of monetisation of Reliance Capital's non-core investments (non-financial services businesses) and consequently no improvement in liquidity.


user profile image
nishi Shah answered.
1 year ago


Rating agencies CARE Ratings and ICRA downgraded Reliance Capital because two of its arms – Reliance Home Finance (RHFL) and Reliance Commercial Finance (RCFL) - have delayed bank loan repayments. CARE Ratings cut RHFL’s rating to D for default from BBB+ as the company failed to repay bank loans on time. An analyst at the company said: There has been rescheduling of repayment in one of the bonds issued by RCFL. Other instruments downgraded have high risk of default given the weakening of the credit profile of the companies. CARE also downgraded an RCFL nonconvertible debenture (NCD) series worth Rs 200 crore to D from BBB+ on which there has been a mutually agreed deferment in repayments. Payments due on April19 have been deferred to September. Besides, the rating company has downgraded various NCDs/other credit facilities mostly to C (junk status) from BBB+.

ICRA revised its ratings for Anil Ambani-led Reliance Capital and its subsidiaries from A2 to A4 with negative implications.

"The ratings continue to be on watch with negative implications," said ICRA, adding that this reflects slow pace of monetisation of Reliance Capital's non-core investments (non-financial services businesses) and consequently no improvement in liquidity.


user profile image
nishi Shah answered.
1 year ago


Rating agencies CARE Ratings and ICRA downgraded Reliance Capital because two of its arms – Reliance Home Finance (RHFL) and Reliance Commercial Finance (RCFL) - have delayed bank loan repayments. CARE Ratings cut RHFL’s rating to D for default from BBB+ as the company failed to repay bank loans on time. An analyst at the company said: There has been rescheduling of repayment in one of the bonds issued by RCFL. Other instruments downgraded have high risk of default given the weakening of the credit profile of the companies. CARE also downgraded an RCFL nonconvertible debenture (NCD) series worth Rs 200 crore to D from BBB+ on which there has been a mutually agreed deferment in repayments. Payments due on April19 have been deferred to September. Besides, the rating company has downgraded various NCDs/other credit facilities mostly to C (junk status) from BBB+.

ICRA revised its ratings for Anil Ambani-led Reliance Capital and its subsidiaries from A2 to A4 with negative implications.

"The ratings continue to be on watch with negative implications," said ICRA, adding that this reflects slow pace of monetisation of Reliance Capital's non-core investments (non-financial services businesses) and consequently no improvement in liquidity.


user profile image
nishi Shah answered.
1 year ago


Rating agencies CARE Ratings and ICRA downgraded Reliance Capital because two of its arms – Reliance Home Finance (RHFL) and Reliance Commercial Finance (RCFL) - have delayed bank loan repayments. CARE Ratings cut RHFL’s rating to D for default from BBB+ as the company failed to repay bank loans on time. An analyst at the company said: There has been rescheduling of repayment in one of the bonds issued by RCFL. Other instruments downgraded have high risk of default given the weakening of the credit profile of the companies. CARE also downgraded an RCFL nonconvertible debenture (NCD) series worth Rs 200 crore to D from BBB+ on which there has been a mutually agreed deferment in repayments. Payments due on April19 have been deferred to September. Besides, the rating company has downgraded various NCDs/other credit facilities mostly to C (junk status) from BBB+.

ICRA revised its ratings for Anil Ambani-led Reliance Capital and its subsidiaries from A2 to A4 with negative implications.

"The ratings continue to be on watch with negative implications," said ICRA, adding that this reflects slow pace of monetisation of Reliance Capital's non-core investments (non-financial services businesses) and consequently no improvement in liquidity.