Reliance Capital Ltd yesterday announced that the credit rating agency ICRA has downgraded its rating by one notch to A1 for the short-term debt programme of the company. Reliance Capital in its exchange filing stated, “ICRA has stated this action is primarily due to refinancing risk of short term maturities and delay in monetising the non-core investments.”
While calling the rating agency’s action “unjustified and inappropriate”, Reliance Capital said that ICRA “arbitrarily refused to provide the Company with an opportunity to meet the members of the Review Committee and address any concerns, thereby turning the entire review process prescribed by SEBI into a futile, pointless and unfair exercise.”
In response, Reliance Capital stated that the company is underway of monetising its entire 42.88% stake in Reliance Nippon Life Asset Management Ltd, which could fetch company at around Rs. 5000 crores.
The company in its exchange filing added: “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.”
Reliance Capital also added that the company expects to collect at least Rs. 10,000 to Rs. 12,000 crores within the next 3-4 months and reduce its debt substantially by 50-60%, based on the data above.