Reliance Capital decries Brickwork’s rating action

‘NCD programme downgraded for no fault of company’

MUMBAI: Reliance Capital Ltd has denounced the Brickwork Ratings’ (Brickwork) recent downgrading of the company’s debenture programme as unjustified and unwarranted.

In a stock market filing, Reliance Capital stated, “We wish to inform you that our company is fully current on all its principal and interest repayments as on date.”
The company has made a stock exchange filing on September 11, 2019 stating that the interest payment for NCDs, which was due on September 9, 2019 was duly activated on the due date, but the same could not go through owing to technical glitch in bank servers on that date and that the payment did go through on the very next bank working day i.e. September 11, 2019.

Reliance explained that these facts were also confirmed by the company’s lenders who had provided financing for the abovementioned payments.

“Despite the above facts, Brickwork yesterday downgraded the rating to BWR D for the company’s secured NCDs programme, market linked debentures and subordinated debt of the company, due to the alleged “delay” in payment of interest by one day,” the company said.

Reliance Capital statement also said that Brickwork had disregarded the confirmation provided by third party independent parties that established the alleged delay was on account of technical glitch in bank servers, while funds had duly been arranged on the due date. “The unjustified action of Brickwork will precipitate a chain sequence of events that will gravely harm the interests of millions of retail and institutional investors having direct and indirect exposure to securities of the company,” the company expressed its displeasure about the development.

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