Reliance Power on Wednesday said it disagrees with ICRA's ratings downgrade for its arm Rosa Power Supply Company.
Ratings agency ICRA has revised the long-term rating on rated instruments of Rosa Power Supply Company Ltd (RPSCL) to 'B- issuer not cooperating' and short-term rating to 'A4 issuer not cooperating', citing significant deterioration in the financial risk profile of Reliance Power Group coupled with the overall deterioration in the liquidity position of the company, among other issues.
In a statement, Reliance Power said the action taken by ICRA is completely unjustified and unwarranted and it disagrees with the revision in the rating of RPSCL.
It said RPSCL is fully current in servicing its debt obligations and is not in any default. The requisite Non Default Statement (NDS) for the month of June 2019 has also been submitted to ICRA.
RPSCL has been consistently deleveraging and debt equity ratio has been brought down to 0.56 in March 2019 from 0.75 in March 2018, it added.
RPSCL is confident of the final order in its favour from Uttar Pradesh Electricity Company Limited (UPERC) regarding approval of the additional capital expenditure and tariff recovery thereof. This will further 'enhance the credit strength of RPSCL, it added.