India Ratings downgrades two Nirav Modi-owned companies

MUMBAI: India Ratings has cut the creditworthiness of two Nirav Modi-owned companies, enmeshed in the country’s biggest banking fraud hours after their chief finance officer Vipul Ambaini was arrested by the Central Bureau of Investigation (CBI).

Those companies include Firestar Diamond FZE’s (FDFZE), Firestar Diamond International Private Limited’s (FDIPL)

The rating downgrade came as the Indian Ratings resolved the Rating Watch Negative (RWN), the action taken earlier for both the companies.


The ratings have been cut to IND C (Structured Obligation), a few notches above than the default grade.

FIPL’s rating action follows the determination that the ongoing investigation into the financial irregularities at common promoter companies would lead to a substantial disruption in FIPL’s operations, India Ratings said in a release.

FDIPL was incorporated in 2006 as a jewellery manufacturing company for exports. FDFZE is a step-down subsidiary of FIPL, which was founded by Nirav Modi.

In the past few days, rating companies have also put Punjab National Bank and its subsidiaries under rating watch, considered a scrutiny before a possible rating downgrade or a cut in outlook.