Acuite assigns improved ratings on bank facilities and commercial paper of Dish TV

The rating agency has assigned the long-term rating of ACUITE BB+ on the Rs450cr bank facilities of DTIL. The outlook is stable.

Nov 25, 2020 08:11 IST India Infoline News Service

Acuite has assigned the long-term rating of ACUITE BB+ on the Rs450cr bank facilities of Dish TV India Limited (DTIL). The outlook is stable. Acuite has also assigned the short-term rating of ACUITE A4+ on the Rs50cr Commercial paper of DTIL.

The company shared in a regulatory filing on Tuesday that the rating reflects established presence of DTIL in the domestic direct to home industry, a healthy subscriber base and extensive experience of the promoters. These rating strengths are partially offset by the susceptibility to regulatory changes in the industry directly impacting the operations of the group, sequentially declining subscriber base and intense competition in the industry.

DTIL is a Noida based company and is a pioneer in the direct to home (DTH) industry in India with the launch of their services in 2003. The company was incorporated in 1988 as the technical arm of the Essel group. DTIL also provides DTH infrastructure support services via its group companies Dish Infra Private Limited (DIPL) and C&S Medianet Private Limited (CMPL).

“Acuite has considered the consolidated business and financial risk profile of Dish TV India Limited (DTIL), Dish Infra Services Private Limited, C&S Medianet Private Limited and Dish TV Lanka Private Limited to arrive at this rating. The consolidation is on account of the presence of inter-corporate guarantees, operational linkages and similar line of business,” company said.

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