Crisil downgrades rating on Reliance Infrastructure’s debt programmes

Credit rating agency Crisil has downgraded its rating on the Reliance Infrastructure’s debt programmes and long-term bank facilities to ‘A+/Negative’ from ‘AA-/Negative’.

The rating revision reflects lower revenue visibility in the company’s engineering, procurement, and construction business coupled with higher-than-expected exposure to group companies.

Reliance Infrastructure’s group company exposure increased significantly to 126 billion rupees as on March 31, 2013 from 101 billion rupees as on March 31, 2012.

Reliance Infrastructure is the largest power distribution licensee in Mumbai, with 25 years license to distribute electricity in its licensed distribution areas spread over 400 Sq. Kms. in the suburbs and surrounding areas of Mumbai, and supplying power to around 29 lakh consumers.