Credit rating agency, India Ratings has downgraded Reliance Infrastructure’s long-term issuer rating to ‘AA-’ from ‘AA’, with a stable outlook. The rating agency has downgraded the same due to the company’s reduced liquidity on account of a decline in its cash balances, and increased support to the projects of its subsidiaries and associate companies. Worsened debt metrics and inter-corporate deposits also remained some of the reasons for the downgrade.
Reliance Infrastructure is the largest infrastructure company developing projects, through various Special Purpose Vehicles; in several high growth areas in Infrastructure sector i.e. Roads, Metro Rail, Airports, etc. The Company is also leading utility company having presence across the value chain of power businesses i.e. Generation, Transmission, Distribution, EPC and Trading.
