Brickwork downgrades Voda Idea's debentures to 'B' over fundraising delay

The downgrade reflects a substantial decline in the company's subscriber base. It lost 12.40 million subscribers during Q1FY22

Rating agency Brickwork Ratings (BWR) has revised the rating for debentures of Vodafone Idea Ltd ( VIL) from "BB-" to "B" over continuous delay in raising funds impacting its liquidity and considerable deterioration in performance in Q1FY22.

The company's modification plea filed with the Supreme Court (SC) to allow corrections of computational errors in Adjusted Gross Revenue (AGR) has been rejected by the SC providing no relief to the company.

The outlook on Non-Convertible Debentures (NCDs) remains negative.

The rating agency in a statement said that while VIL has filed a review petition in this regard, the outcome is uncertain.