RCap debt servicing to be delayed due to rating downgrade by CARE in 2019

CARE had downgraded RCap's long-term debt programme, market-linked debentures and subordinated debt due to delay in payment of interest

Reliance Capital (RCap) will not be able to service its debt in a timely manner following downgrading of its bond programme by CARE Ratings, which triggered an accelerated repayment which otherwise was to take place in a phased manner over eight years, the company said.

RCap, in a regulatory filing last night with regard to the disclosure on payment of interest/principal on Non-Convertible Debentures (NCDs) said, it is unable to proceed with asset monetisation, and thus there will be a delay in repayment.

In September 2019, CARE Ratings had downgraded the Anil Ambani-controlled RCap's entire outstanding debt programme to default