Future Retail ratings get downgraded due to Covid-19 impact

ACUITE and CARE revise the credit ratings of the company.

Oct 30, 2020 12:10 IST India Infoline News Service

ACUITE Ratings & Research Limited has downgraded the credit ratings of Future Retail Limited. Another credit rating agency CARE Limited has also revised the rating of the company on account of impact on liquidity due to Covid-19 pandemic.

The rating on Commercial Paper is revised on October 28, 2020 to ACUITE D from ACUITE A4.  Liquidity of the group has been impacted on account of Covid-19. Non-Convertible Debentures (NCDs) (Proposed) ‘ACUITE D’ from ‘ACUITE C’

“The prolonged impact of Covid-19 has led to multiple defaults by Group Company and hence the credit rating has been downgraded (#),” company shared reasoning in a regulatory filing.

The ratings of Care Ratings Limited issued on October 29, 2020 on Non-Convertible Debenture Issue revised CARE B from CARE BB+.

“Disruption in operations due to Covid-19 pandemic which could impact the business risk profile resulting in lower operating cash flow,” it reasoned.

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