Reliance Infra falls around 4% on debt downgrade
Mumbai: Shares in Reliance Infrastructure fell around 4 percent after rating agency Crisil downgrades its rating on the company's debt programmes and long-term bank facilities to "A+/Negative" from "CRISIL AA-/Negative".
Crisil says the rating revision reflects lower revenue visibility in the company's engineering, procurement, and construction business coupled with higher-than-expected exposure to group companies.
Reliance Infra's group company exposure increased significantly to 126 billion rupees as on March 31, 2013 from 101 billion rupees as on March 31, 2012, which is contrary to the agency's expectations.
Crisil adds that the impact of these developments is partially offset by the incremental annual cash flow expected from the recovery of regulatory assets in its Mumbai distribution business.