CARE downgrades rating of Rana Kapoor-linked firm, citing CBI probe

Agency concerned investigation may hit asset valuation, monetisation

CARE Ratings has downgraded the rating for debentures of Morgan Credits Pvt Ltd (MCPL), an entity connected with Rana Kapoor family, from “BBB- “to “BB” on delay in monetisation of identified investments.

The delay in timely monetisation could be further exacerbated by the ongoing investigation of the promoters of MCPL by the Enforcement Directorate (ED) and Central Bureau of Investigation.

"The above mentioned investigation may adversely impact the valuations of the identified investments as well as cause elongation in timelines for divestment of the companies," CARE said in statement.

The rating remains constrained by the moderate profitability and MCPL being