RCap slips 9% after CARE downgrades Rs 17,000-crore debt to default

NEW DELHI: Shares of Reliance Capital cracked nearly 9 per cent in Monday's session after the company’s debt worth around Rs 17,000 crore was downgraded to ‘default’ by credit rating agency Care Ratings due to a delay in servicing of the coupon on several Non-Convertible Debentures (NCDs).

The non-banking finance company (NBFC) crisis, which started around a year ago, has deepened with Altico, another Mumbai-based NBFC, defaulting on its debt obligations.

Coupon payments of certain NCDs of the Anil Ambani-backed financial services holding company were due on September 9. The payments were delayed by one working day, with Reliance Capital paying the same on September 11.


In a filing to the Bombay Stock Exchange, Reliance Capital called the credit rating action “unjustified” saying the interest payments were activated on the due date, but it did not go through due to a “technical glitch in bank servers”, and that the payment was processed on the very next bank working day.

The shares of the company closed 7.50 per cent lower at Rs 29 on BSE.