Further, revision in ratings also factors in inordinate delay in publication of FHLs results for the quarter ending September 30, 2017 and December 31, 2017, it added.
The rating agency also took note of the resignations tendered by Malvinder Singh (Executive Chairman) and Shivinder Singh (Non-executive Vice Chairman) from the FHL board.
Delhi High Courts recent decision to uphold the Singapore tribunal's arbitration order in favour of Daiichi Sankyo also paved the way for the downgrade.
"The ratings continue to be on credit watch in view of the sizable reduction in promoters stake i.e. Fortis Healthcare Holdings Pvt. Ltd. (FHHPL) in FHL in the past year," the rating agency said.
The liquidity profile of holding companies is stretched, and with significant portion of promoters shareholding in FHL already being pledged, the ability of these companies to raise additional debt is affected, leading to higher reliance on refinancing and stake sales, it added.
On Tuesday, ICRA too downgraded credit ratings of Fortis Healthcare and its four arms.
Shares of Fortis Healtcare today ended 1.65 per cent higher at Rs 141.60 on BSE.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)