The company issued the statement after rating agency Care Ratings downgraded the rating of the company's short-term bank facilities to ‘CARE D’ from ‘CARE A4+’
“The revision in the rating assigned to the bank facilities of Dish TV
India takes into account default in payment of short term loan due on November 28, 2019,” Care Ratings said in a press release on November 22.
“The financial profile stands weak on account of stretched liquidity position due to sizeable debt repayments in the near term and the company would continue to remain in the investment mode. In addition, impairment on goodwill as on March 31, 2019 has resulted in decline in reported net-worth”, it said.
However, Dish TV India, on Friday after market hours, said it has been drawing on its internal cash accruals to fund its capital expenditure for more than six quarters now. Debt and interest payment obligations falling due after the particular incident of non-service have also been fulfilled on time.
While being cautious about its cash expenditures, the company also remains optimistic about improvement in its liquidity situation going forward, it said.
The Company is in touch with its banking partners and hopes to get alternate credit facilities to finance its regular capex so as to normalize the utilization of its cash flow towards debt repayment, it added.
Meanwhile, on Friday, the stock of Dish TV India had tanked 15 per cent to Rs 12.56 on the BSE after the company informed the exchanges that a lender had invoked 3.12 million pledged shares.
“On December 4, 2019, IDBI Trusteeship Services invoked 3.12 million equity shares representing 0.17 per cent of promoter holding pledge for collateral of loan,” the company said in a regulatory filing.
In the past two weeks, the stock has underperformed the market by falling 33 per cent, as compared to 1 per cent decline in the S&P BSE Sensex till Friday.
At 10:33 am, Dish TV India was up 9 per cent at Rs 13.66 on the BSE, as compared to 0.02 per cent decline in the benchmark index. A combined 55 million shares have changed hands on the counter on the NSE and BSE so far.