New Delhi: Ratings agency India Ratings Friday downgraded Reliance Infrastructure Ltd's long-term issuer rating to 'D – Issuer Not Cooperating'.
The downgrade comes barely a week after the Anil Ambani-led company's auditors raised red flags over its financial results as well as "significant doubt" over the group's ability to continue as a going concern.
"India Ratings and Research (Ind-Ra) has downgraded Reliance Infrastructure Limited's (RInfra) Long-Term Issuer Rating to 'IND D (Issuer Not Cooperating)' from 'IND C'," Ind-Ra said in a statement.
The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency, it said.
Thus, the rating is based on the best available information. Therefore, investors and other users are advised to take appropriate caution while using the rating, it added.
"The rating will now appear as 'IND D (Issuer Not Cooperating)' on the agency's website," it said, adding the downgrade reflects RInfra's ongoing delays in debt servicing.
It also said timely debt servicing for at least three consecutive months could result in an upgrade.
R-Infra is the flagship company of the Reliance Group, led by Anil Ambani, active in the energy and infrastructure businesses.
Reliance Infrastructure had reported a net loss of Rs 3,301 crore for the quarter ended March 31 on a consolidated basis. The company had recorded a profit of Rs 133.66 crore in the corresponding quarter of the previous financial year.
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