Brickwork Ratings lowers rating of Reliance Capital

Reliance Capital Saturday said Brickwork Ratings has revised downward the rating to AA for the company's long-term debt programme, market-linked debentures and subordinated debt, 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 sale of pledged shares by L&T Finance and Edelweiss Group.

Lenders said that Reliance Group failed to make timely payments leading to sale of pledged shares. In a separate filing, Reliance Infrastructure Saturday said Brickwork Ratings has moved the rating of the company to 'Issuer not Cooperating; BWR C' category due to non-submission of required information for the review.

"BWR has moved the rating of Reliance Infrastructure Ltd to the 'Issuer not Cooperating; BWR C' category from 'BWR C' due to non-submission of required information for the review even after consistent follow up with the company," Reliance Infrastructure said in a BSE filing.