Ind-Ra cuts rating on Voda Idea debentures

India Ratings and Research (Ind-Ra), has downgraded its ranking on non convertible debentures of Rs. 3,500 crores of Vodafone Idea on the again of Supreme Court rejecting the telco’s evaluation petition in opposition to fee of statutory dues .

“India Ratings and Research (Ind-Ra), has downgraded its rating on Non-Convertible Debentures of Rs. 3,500 crores of erstwhile Vodafone Mobile Services Limited (since merged with the Company),” mentioned the telco in a regulatory trade on Friday .

The ranking has been introduced down from BBB to BBB minus. The telco-Vodafone India and Idea Cellular accomplished their merger in 2018 -August finish to grow to be Vodafone Idea .

The ranking company defined that the downgrade is on account of “crystallisation of adjusted gross revenue (AGR) related liabilities, post the dismissal of the review petition by the Supreme Court”.

The telco has to pay AGR dues of about Rs 53,000 crore to the federal government however now could be awaiting the apex court docket’s listening to of its modification software subsequent week .

The modification plea filed by -Bharti Airtel and Vodafone Idea hopes that the SC will permit the telcos to barter with telecom division on funds schedules past the January 23 deadline . It was filed after the evaluation petition was dismissed by the highest court docket .

Vodafone Idea had requested the telecom division to not take any motion in opposition to the telco for lacking the deadline until SC’s subsequent listening to . In the in the meantime Department of Telecommunications (DoT) on Thursday directed its circle workplaces to not take any coercive motion in opposition to telcos for lacking the deadline .

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