CARE downgrades Reliance Home Finance's long-term debt instruments to 'D'

CARE Ratings has downgraded Anil Ambani-led Reliance Home Finance's long-term debt programme, market-linked debentures, subordinated debt, non-convertible debentures (NCDs) and upper tier-11 NCDs to 'D'.CARE said the action is primarily due to delay in servicing of principal on one of the NCDs.Reliance Home Finance said its lenders have entered into an inter-creditor agreement for arriving at the debt resolution plan in accordance with the June 7 circular issued by the Reserve Bank of India on prudential framework for resolution of stressed assets.The company has been directed by lenders led by the lead bank to keep servicing only the interest obligation across all lenders. Debt servicing towards principal repayment irrespective of type of facility is to be made on parity."The company considers the above rating action untimely and uncalled for, specifically since it is working on the resolution plan," it said in a statement.In June, Reliance Home Finance had said that maturity of ...