New Delhi:
India Ratings has downgraded rating on
convertible bonds issued by
Vodafone before its merger with
Idea Cellular.
The agency has downgraded the rating on Vodafone's Non-Convertible Debentures worth Rs 3,500 crore from ‘BBB-’ to ‘B’, the company informed the exchanges on Tuesday.
"As per the rating rationale published on the website, the downgrade is on account of severe stress on the company's near-term liquidity post the Supreme Court's ruling on February 14, 2020, which directed the telecom companies (telcos) to pay the adjusted gross revenue (AGR) related liabilities to the government of India by 17 March 2020," the company said.
Vodafone
Idea owes Rs 56,000 crore to the government as AGR dues and has paid Rs 2,500 crore on Monday. The company also said it will pay another Rs 1,000 crore by this week.