Care minimize rating on Vodafone Idea’s long haul bank offices, NCDs
New Delhi: Vodafone Idea on Friday said Care Ratings has downsized rating on its long haul bank offices and non-convertible debentures refering to disintegration in the company’s general hazard profile following the SC controlling on AGR duty, as likewise noteworthy misfortunes in September quarter.
“…the downsize is by virtue of huge disintegration in the general hazard profile of the organization while taking into awareness of the monetary effect of negative decision of Supreme Court…,” the organization said in an administrative documenting.
It likewise considers “critical misfortunes in Q2FY20 because of arrangement identified with AGR levy, acknowledgment of conceded resources and arrangement for extra devaluation/debilitation of benefits and therefore bringing about the noteworthy disintegration in the unmistakable total assets and by and large obligation assurance measurements”, the recording said.
The FICO assessment has been changed to BBB-from An on long haul bank offices and to BBB-from An if there should be an occurrence of non-convertible debentures, the documenting included.
“It is thus educated that Care Ratings (CARE), has downsized its rating on Long Term Bank Facilities and Non-Convertible Debentures according to the rating method of reasoning transferred on its site today,” the recording said.
In a different documenting the organization educated that Crisil has downsized its rating on non-convertible debentures of Rs 3,500 crores of recent Vodafone Mobile Services Limited (VMSL).
“…the downsize is because of significant effect on the money related hazard profile by virtue of the potential payout against the balanced gross income (AGR) related contested risk and proceeded with frail working execution” the organization said.
As needs be, the rating has been reconsidered to BBB-from BBB+ on non-convertible debentures, it included.
The Supreme Court has maintained the administration’s situation on including income from non-media transmission organizations in ascertaining the yearly balanced gross income (AGR) of telecom organizations, a portion of which is paid as permit and range expenses to the exchequer.
Prior this week, Telecom Minister Ravi Shankar Prasad had educated the Lok Sabha in a composed answer that Bharti Airtel, Vodafone Idea and other telecom organizations owe the legislature as much as Rs 1.47 lakh crore in past statutory levy, following the judgment.
On account of Vodafone Idea, the liabilities remain at a combined Rs 53,038 crore, including Rs 24,729 crore of range use charges duty and Rs 28,309 crore in permit expense.
The administration prior this week doled out a Rs 42,000 crore help to obligation loaded telecom organizations after it made a deal to avoid taking any installments for range they use for the following two years, in spite of the fact that it didn’t offer any alleviation on AGR duty.