Care downgrades rating on Vodafone Idea's long term bank facilities, NCDs

Vodafone Idea on Monday said Care Ratings has downgraded rating on its long term bank facilities and non-convertible debentures.

The downgrade is on account of "significant erosion" in the overall risk profile of the company in the wake of absence of relief on modification plea relating to AGR dues on February 14.

It also takes cognizance of recent losses suffered by the company in the quarter ended December.

In a regulatory filing, Vodafone Idea said that Care Ratings Limited (CARE) has downgraded its rating on long term bank facilities and non-convertible debentures. The rating on long term bank facilities and non-convertible debentures has been revised to 'BB-' from 'BBB-'.

"As per the rating rationale published on the website, the downgrade is on account of significant erosion in the overall risk profile of the company while taking into cognizance the financial impact of no relief being granted on modification plea on 14 February 2020 of telecom companies seeking new schedule of Adjusted Gross Revenues (AGR) dues by Supreme Court and significant losses to the tune of Rs 6,453 crores in Q3FY20," Vodafone Idea said.

In a separate filing, Vodafone Idea had said that its board has authorised the company to immediately pay Rs 2,500 crore, a portion of its statutory dues, to the telecom department on Monday.

The company also promised to pay another Rs 1,000 crore before the end of the week.

"The board will take further stock of the situation to see how further additional payments can be made," the company had said.

Vodafone Idea's dues are over Rs 53,000 crore as per estimates by the telecom department.

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