"Risks remain over FRL's liquidity and its ability to continue to finance its ongoing obligations until the transaction with RRFLL closes, particularly as the Reserve Bank of India's moratorium on debt servicing requirements ended August 31," said Fitch.
FRL believes that the announcement of a transaction and the impending sale of its assets should allow the release of the pre-approved working capital facilities by its syndicate banks or allow it to obtain additional bank financing, which had previously not been forthcoming.
"In our view, these actions will resolve the short-term liquidity strain that constrains the ratings," said Fitch.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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