CARE downgrades Reliance Capital bonds' rating from 'A' to 'BBB'

Company protests move, says it had repaid Rs 650 crore of NCDs due on May 17

CARE Ratings has downgraded Reliance Capital’s (RCap’s) long-term debt and subordinated debt rating by three notches from “A” to “BBB” due to reasons including defaults by two of its subsidiaries — Reliance Home Finance (RHFL) and Reliance Commercial Finance (RCFL). The agency also said it would keep the firm on credit watch with developing implications.

A statement from RCap, meanwhile, protested the downgrade that put its credit score two notches above junk. In the statement the company said it had repaid Rs 650 crore of non-convertible debentures that were due on May 17. “There has not been any adverse change in