Reliance Capital faces rating downgrade over non-core investments

Reliance Capital Saturday said Brickwork Ratings has revised downward rating to AA for long-term debt programme, market-linked debentures and subordinated debt of the company, primarily due to delay in monetising the non-core investments. The company remains confident to be able to monetise some of these assets over the next two quarters and bring down the debt significantly, Reliance Capital said in a filing to stock exchanges.

The rating continues to factor RCap's experienced management, well-diversified and growing business profile of companies (subsidiaries and associates) in the financial services segment, it said. Shares of Anil Ambani-led Reliance Group's three listed companies, including Reliance Capital, witnessed a sharp decline last week following the sale of pledged shares by L&T Finance and Edelweiss Group. Lenders said that Reliance Group failed to make timely payments leading to the sale of pledged shares.