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    Ind-Ra cuts rating on Voda Idea debentures

    Synopsis

    “India Ratings and Research (Ind-Ra), has downgraded its rating on Non-Convertible Debentures of Rs. 3,500 crores of erstwhile Vodafone Mobile Services Limited (since merged with the Company),” said the telco in a regulatory exchange on Friday .

    voda-Idea
    The telco-Vodafone India and Idea Cellular completed their merger in 2018 -August end to become Vodafone Idea .
    India Ratings and Research (Ind-Ra), has downgraded its rating on non convertible debentures of Rs. 3,500 crores of Vodafone Idea on the back of Supreme Court rejecting the telco’s review petition against payment of statutory dues .

    “India Ratings and Research (Ind-Ra), has downgraded its rating on Non-Convertible Debentures of Rs. 3,500 crores of erstwhile Vodafone Mobile Services Limited (since merged with the Company),” said the telco in a regulatory exchange on Friday .

    The rating has been brought down from BBB to BBB minus. The telco-Vodafone India and Idea Cellular completed their merger in 2018 -August end to become Vodafone Idea .

    The rating agency explained that the downgrade is on account of “crystallisation of adjusted gross revenue (AGR) related liabilities, post the dismissal of the review petition by the Supreme Court”.

    The telco has to pay AGR dues of about Rs 53,000 crore to the government but now is awaiting the apex court’s hearing of its modification application next week .

    The modification plea filed by -Bharti Airtel and Vodafone Idea hopes that the SC will allow the telcos to negotiate with telecom department on payments schedules beyond the January 23 deadline . It was filed after the review petition was dismissed by the top court .

    Vodafone Idea had requested the telecom department to not take any action against the telco for missing the deadline till SC’s next hearing . In the meanwhile Department of Telecommunications (DoT) on Thursday directed its circle offices not to take any coercive action against telcos for missing the deadline .


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