Brickwork Ratings (Brickwork) has downgraded the rating to D for Reliance Home Finance Ltd's long-term debt programme, MLDs, subordinated debt, NCDs public issue, upper Tier-II NCDs and short-term debt programme. Brickwork has stated this action is primarily due to non payment of Commercial Paper.
As informed vide our letters dated 27/8/19 & 10/9/19, the Lenders of the Company (Banks) have entered into an Inter-Creditor Agreement for arriving at the debt resolution plan in accordance with the circular dated 7/6/19 issued by the Reserve Bank of India on Prudential Framework for Resolution of Stressed Assets.
The Company has been directed by the lenders led by the Lead Bank to keep servicing only the interest obligation across all lenders. Debt servicing towards principal repayment irrespective of type of facility is to be made on parity.
The Company considers the above rating action uncalled for; specifically since the Company is working on the resolution plan.
Shares of Reliance Home Finance Ltd was last trading in BSE at Rs.5.36 as compared to the previous close of Rs. 5.63. The total number of shares traded during the day was 57954 in over 118 trades.
The stock hit an intraday high of Rs. 5.59 and intraday low of 5.35. The net turnover during the day was Rs. 315525.