ICRA places long-term capitals of three ADAG firms under watch

Group companies under watch with negative implications.

Rating firm ICRA on Friday said it has placed some of the long-term fund and non-fund based capitals of three Anil Ambani Group companies under watch with negative implications.

The three companies are Reliance Communications Ltd,Reliance Telecom Ltd and Reliance Infratel Ltd and Reliance Communications Ltd,ICRA said in separate statements.

“ICRA has placed the LAA+ long-term rating assigned to the Rs 5,000 crore non-convertible debenture programme and Rs 28,116 crore long-term fund based/non-fund based limits of Reliance Communications Ltd (RCom) under watch with negative implications,” it said in a statement.

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The ‘LAA’ suggest high-credit-quality rating with the rated instrument considered to be carrying low credit risk.

“The rating action takes into consideration regulatory uncertainties and overall negative sentiments about the telecom sector in India,which in ICRA’s opinion,may adversely affect the company’s ability to deleverage its balance sheet,” the ratings firm said.

Regarding Reliance Telecom Ltd and Reliance Infratel Ltd,ICRA said their “rating action takes into account the placement of long term rating of the parent company — RCom — under watch with negative implications.”