Fitch Ratings on Wednesday assigned retailer Future Retail Ltd (FRL), which runs Big Bazaar chain — a final long-term issuer default rating (IDR) of ‘CCC+’, indicating substantial credit risk.
Kishore Biyani-owned FRL’s $500 million senior secured notes due in 2025 have been assigned a rating of ‘CCC+’ with a recovery rating of ‘RR4’, Fitch said. RR4 indicates average recovery prospects in the event of default.
“The final IDR and rating on the notes is one notch below our expected ratings of ‘B-’ assigned on April 2, 2020 due to the impact of coronavirus-related shutdowns on FRL’s liquidity,” the rating agency said.
Meanwhile, Icra on Wednesday downgraded the long-term ratings on various facilities of Edelweiss Housing Finance and Edelweiss Finance and Investments after taking a consolidated view of the Edelweiss Group.
Given the close linkages between the group entities, common promoters and senior management team, shared brand name, and strong financial and operational synergies, the agency downgraded the long-term ratings on several facilities of the group’s with a negative outlook.
The downgrade took into account the increased stress in the wholesale portfolio, which could lead to a deterioration in the asset quality, and the consequent impact on the financial performance. —With FE
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