CARE revises credit rating on short-term bank facilities of Dish TV to A4; Stock trades flat

The rating continues to be on credit watch with Negative Implications.

Oct 04, 2021 11:10 IST India Infoline News Service

CARE Ratings Limited (CARE) has reviewed the ratings assigned for Dish TV India Limited’s Bank facilities, basis the recent developments including the operational and financial performance of the company, including recent developments and the possible impact of the same on the credit profile of the company.

Based on the said review, CARE vide its letter dated October 1, 2021, has revised the credit ratings on Short Term Bank Facilities Rs500cr (Reduced from Rs600cr) to CARE A4. It continues to be on credit watch with Negative Implications.

At arounnd 11.46 am, Dish TV India Ltd was trading flat at Rs20.20 per piece on the BSE.
“The reaffirmation of ratings assigned to the bank facilities of DTIL continue to factor in the reduced financial flexibility consequent to high pledge of the promoter holding in its listed group companies, and increasing competition faced both from peers and allied technology platforms in a highly regulated DTH industry. Furthermore, the ratings also take into account the substantial provision made by DTIL (consolidated) towards license fee, which upon materialization would necessitate incremental debt funding. The ratings also consider the decline in the active subscriber base and consequent decline in topline of the company,” company shared CARE’s rationale of rating.

“The ratings, however, continue to derive strength from experience of the promoters and professional management team, long track record of the company’s operations, reduction in debt levels and subsequent improvement in gearing levels, and DTIL’s strong position in DTH industry,” it added.

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