New Delhi: Reliance Capital Ltd on Tuesday informed that Icra has revised its rating by one notch to A1 for the short-term debt programme of the company due to delay in monetizing non-core investments. The agency has downgraded the rating with negative implications outlook.
"ICRA has stated this action is primarily due to refinancing risk of short term maturities and delay in monetising the noncore investments. The company considers the rating action completely unjustified and inappropriate," Reliance Capital said in a regulatory filing.
The company also places on record the fact that the rating agency arbitrarily refused to provide the company an opportunity to meet the members of the Review Committee and address any concerns, thereby turning the entire review process prescribed by the Sebi into a futile, pointless and unfair exercise, it said.
As publicly informed, it said, the company is in the process of monetising its entire 42.88% stake in Reliance Nippon Life Asset Management Ltd, which at current market price is valued at over ₹5,000 crore.
"The company has also announced its plans to monetise 49% stake in Reliance General Insurance Company Limited (which is presently 100 per cent owned), and the DRHP has recently been filed with SEBI," it said. In addition, the company is at an advanced stage of monetisation of several of its non-core investments.
Reliance Capital, Reliance Nippon and Reliance General Insurance are part of billionaire Anil Ambani-controlled Reliance Group.
Based on the above, the company expects to realise minimum proceeds of ₹10,000- 12,000 crore within the next 3-4 months, and slash its debt by a substantial 50-60%, besides clearing all short term maturities, it added.
Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed