Left Menu
Development News Edition

Rating agencies downgrade Vodafone-Idea, Bharti Airtel after SC ruling on AGR

Care Ratings has downgraded its rating on long-term bank facilities and non-convertible debentures of Vodafone Idea as Fitch placed Bharti Airtel's BBB long-term foreign currency issuer default rating (IDR) on rating watch negative (RWN).


Rating agencies downgrade Vodafone-Idea, Bharti Airtel after SC ruling on AGR
COAI says the SC decision will negatively impact incumbent operators by Rs 92,000 crore. Image Credit: ANI

Care Ratings has downgraded its rating on long-term bank facilities and non-convertible debentures of Vodafone Idea as Fitch placed Bharti Airtel's BBB long-term foreign currency issuer default rating (IDR) on rating watch negative (RWN). Fitch said that the RWN reflects uncertainty on the amount and timing of unpaid regulatory dues after Supreme Court ruled on October 24 in favour of the Department of Telecommunications' (DoT) definition of adjusted gross revenue (AGR).

"This led to DoT's demand that Bharti pays unpaid dues on licence fees of three billion dollars. There may be another potential demand of 2.9 billion dollars in regard to unpaid dues on spectrum usage charges," Fitch added. The rating agency also put Bharti and Bharti Airtel International (Netherlands) BV's senior unsecured bonds and Network i2i's subordinated perpetual bonds on RWN.

The resolution of RWN, which may take more than six months, requires clarity on the exact amount and timing of the payment of unpaid dues and whether the government will provide any financial relief to the telecom sector affected by the court ruling, Fitch added. On the other hand, Care Ratings downgraded Vodafone Idea's long-term bank facilities and non-convertible debentures to Care A-minus with negative implications.

The move is on account of Supreme Court ruling on the AGR matter and also an extension of long stop date from October 24 to December 24 for the sale of Indus Tower stake to Bharti lnfratel. The downgrades follow Cellular Operators Association of India (COAI) saying the apex court's decision will negatively impact incumbent operators by over Rs 92,000 crore.

(ANI)

Also Read: Fitch cuts India's FY20 GDP growth forecast to 5.5 pc

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION/BLOG/INTERVIEW

JNU Administration's 100-meter challenge before JNUSU

For the first time in its history, Jawaharlal Nehru University JNU Administration is seeking permanent deployment of local police to keep protesting students at 100 meters away from the Administrative Block. It would be interesting to see h...

Sentiment Analysis of Twitter users during COP25: Governments losing trust on Climate Action

Sentiment analysis of Twitter users during COP25 in Madrid, being held from December 2-13, shows widespread fear on climate change due to global warming but almost no trust on governments in meeting the emission targets. In the analysis the...

These innovators are making humanitarian response more efficient

These alarming trends prompt a call for the world to not only address the ongoing crisis but also to adopt innovative approaches to fulfill the growing humanitarian needs in such emergencies. ...

Hyderabad Encounter: A sentiment analysis of public mood on day of encounter

Sentiment analysis of twitter users revealed that they showered salutes on Hyderabad police for eliminating alleged gang rapists of the veterinary doctor but only a few believe in cops version of successive events leading to encounter....

Videos

Latest News

'Brexit election' raises hopes and fears in Northern Ireland

Belfast, Dec 14 AFP Prime Minister Boris Johnsons crushing election victory gives Britain a chance to move past years of gridlock over Brexit -- especially in Northern Ireland, where social and political divides run deep. Were leaving limbo...

Poland's main opposition picks moderate veteran for presidential vote

Polands main opposition group, the centre-right Civic Platform PO, picked a party veteran known for building consensus on Saturday as its contender to unseat nationalist ally Andrzej Duda in a presidential election next year.A former parlia...

Farooq Abdullah's detention extended by 3 months

The detention of Farooq Abdullah, a three-term chief minister of erstwhile state of Jammu and Kashmir, was extended on Saturday by three months and he would continue to remain at his residence that has been declared a sub-jail, officials sa...

Protests against amended Citizenship Act continues in NE, WB

Protests against amended Citizenship Act continues in NE, WB Eds Combining related stories GuwahatiShillongKohimaKolkata, Dec 14 PTI Protests against the amended Citizenship Act continued on Saturday in West Bengal and in the North East, w...

Give Feedback