ICRA Ratings revision of short-term debt arbitrary: Reliance Capital

The Anil Ambani-led Reliance Capital Ltd on Saturday said its long-term ratings by CARE Ratings stands at 'A', and termed ICRA Ratings revision of short-term debt programme as unjustified, unwarranted and arbitrary.

In a statement issued here, Reliance Capital said, CARE Ratings and Brickworks have rated its long-term debt as 'A' and 'A+' signifying instruments with such ratings are considered to have adequate degree of safety for timely services of financial obligations.

Reliance Capital said: "ICRA's rating action limited to short term debt and is completely unjustified and unwarranted and was completed arbitrarily with an illusory 'review' process."

On April 26, ICRA Ratings had revised downwards the short-term debt ratings of various debt instruments of Reliance Capital to A4 (rating watch with negative implications).

According to Reliance Capital, its short term debt is only Rs 950 crore and it will be fully repaid prior to Sept 30, 2019 from sale proceeds of 43 per cent stake (market price Rs 5,300 crore) in Reliance Nippon Life Asset Management (RNAM). IANS