According to a release filed with the exchanges, the rating agency's rationale behind the move was due to a lower likelihood of any relief from the government.
Rating agency CRISIL on February 20 downgraded Vodafone Idea’s Non-Convertible Debentures (NCDs) of Rs 3,500 crore to B+, down from BB.
According to a release filed with the exchanges, the rating agency's rationale behind the move was due to a lower likelihood of any relief from the government after the Supreme Court directed telcos to make the payment on Adjusted Gross Revenue (AGR) dues before the next hearing on March 17.
The Supreme Court on February 14 rejected a plea by telcos for extension in the payment schedule and asked them to deposit an estimated Rs 1.47 lakh crore in past dues for spectrum and licences. It threatened to initiate contempt proceedings against top executives of these firms for non-payment.
Vodafone Idea Chairman Kumar Mangalam Birla on February 18 met Telecom Secretary Anshu Prakash as he looked for options to keep the company afloat.
Of the estimated dues that include interest and penalty for late payments, Airtel and Vodafone Idea owe about 60 percent.(With inputs from PTI)
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