India Ratings supends Next Retail ratings

The consumer durables, electronics chain failed to furnish adequate information

India Ratings has suspended the ratings assigned to Videocon-run consumer durable and electronics chain Next Retail due to lack of adequate information provided by the chain.

The ratings firm has suspended the 'BB+' long term issuer rating with stable outlook to the suspended category.

"The ratings have been migrated to the suspended category due to lack of adequate information, and India Ratings will no longer provide ratings or analytical coverage on Next," the firm said.

The ratings will remain in the suspended category for a period of six months and be withdrawn at the end of that period. However, in the event the issuer starts furnishing information during this six-month period, the ratings could be re-activated and will be communicated through a rating action commentary, it said.

Though Videocon was earlier looking to sell stake in the chain, it had put the plans on hold as potential buyers have sought clarity on the conditions put by the government while allowing foreign direct investment in multi-brand retail.

Next Retail executives could not be contacted for comments.