Further, rating agencies such as CARE and S&P have downgraded bank facilities, thus affecting the sentiment further. For instance, CARE Ratings, on March 26, downgraded Future Retail's long-term bank facilities worth Rs 528 crore to AA- from A+ with negative outlook. The company's long-term non-convertible issue of Rs 199 crore has been downgraded to AA- from A+ with negative outlook. Also, it has been placed on credit watch with negative implications.
"The revision of ratings assigned to the long-term bank facilities and instruments of Future Retail Limited (FRL) takes into
account significant decline in market capitalisation which along with high promoter pledge is expected to significantly impact
financial flexibility," CARE Ratings said in its report.
S&P Global Inc, as per reports, has also revised rating of Future Retail's US dollar denominated Notes to B- from BB-. So far in March, share price of the compaby has tanked a whopping 72 per cent, data shows.
That apart, CARE Ratings has revised long-term bank Facilities - Term Loan rating of Future Enterprise to CARE A.
According to media reports, Kishore Biyani is exploring a significant stake dilution in Future Retail and a merger of insurance joint venture Future Generali with bigger, well capitalised players. The Group founder is also in talks with PremjiInvest to sell a large chunk of the promoter stake in Future Retail Ltd (FRL) to tide over his liquidity crisis, reports say.