New Delhi: Ratings agency India Ratings Friday downgraded Reliance Infrastructure Ltd's long-term issuer rating to 'D - Issuer Not Cooperating'.
The downgrade comes barely a week after the Anil Ambani-led company's auditors raised red flags over its financial results as well as "significant doubt" over the group's ability to continue as a going concern.
"India Ratings and Research (Ind-Ra) has downgraded Reliance Infrastructure Limited's (RInfra) Long-Term Issuer Rating to 'IND D (Issuer Not Cooperating)' from 'IND C'," Ind-Ra said in a statement.
The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency, it said.
Thus, the rating is based on the best available information. Therefore, investors and other users are advised to take appropriate caution while using the rating, it added.
"The rating will now appear as 'IND D (Issuer Not Cooperating)' on the agency's website," it said, adding the downgrade reflects RInfra’s ongoing delays in debt servicing.
It also said timely debt servicing for at least three consecutive months could result in an upgrade.
R-Infra is the flagship company of the Reliance Group, led by Anil Ambani, active in the energy and infrastructure businesses.
Reliance Infrastructure had reported a net loss of ₹3,301 crore for the quarter ended March 31 on a consolidated basis. The company had recorded a profit of ₹133.66 crore in the corresponding quarter of the previous financial year.
On an annual basis, it had incurred a loss of ₹2,426.82 crore for 2018-19. It had reported a profit of ₹1,255.50 crore in 2017-18.
The company's auditors BSR & Co LLP and Pathak HD & Associates had remarked in their note: "The Group and its associates and joint venture incurred a net loss (after impairment of assets) of ₹2,426.82 crore during the year ended 31 March 2019" and pointed out anomalies saying that "the consequential impact of these events or conditions, along with other matters...indicate that a material uncertainty exists that may cast significant doubt on the Group's ability, particularly in relation to the above, to continue as a going concern".
This story has been published from a wire agency feed without modifications to the text.