S&P lowers ratings for Future Retail overseas bonds to 'highly vulnerable'

About Rs 100 crore cash, cash equivalents already eroded

Global rating agency Standard and Poor’s today lowered rating on Future Retails Ltd’s overseas bonds worth $500 million from CCC- to CC, indicating that they are 'highly vulnerable'. The move follows the termination of the deal to sell the ailing company's assets to the Mukesh Ambani-led Reliance group.  

The issuer credit rating remains 'SD', given the continuing default on the onshore bank borrowings.

The rating agency said in a statement that it views a default by FRL on its senior secured notes (bonds) as a virtual certainty. The likelihood of the company failing to make the next coupon payment due