Shares in Anil Dhirubhai Ambani group saw a massive fall in trade today, following a decision by CARE Ratings to downgrade the long-term ratings on some of the securities issued by group firms.
The shares of Reliance Home Finance was down a staggering 20 per cent, while Reliance Infrastructure was down 8 per cent, Reliance Power fell 18 per cent and Reliance Capital dropped 9 per cent.
"We hereby inform that CARE Ratings (CARE) has revised its rating to C for Company's long-term debt programme, market linked debentures, subordinated debt, non-convertible debentures (NCDs) public issue and upper Tier-II NCDs and to D for Company's long-term debt programme (banking facilities only). CARE has stated this action is primarily due to liquidity profile of the Company," Reliance Home Finance stated in a notification to the exchanges.
Further, ICRA Limited (ICRA) has also revised its rating to A4 (on rating watch with negative implications) for the short-term debt programme of the Company. ICRA has stated this action is primarily due to modest liquidity in relation to the size of borrowings.
"The Company considers the above rating actions untimely and uncalled for action. There has not been any adverse change in the Company's operational parameters from the time of the last rating actions," Reliance Home Finance stated.