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Our Bureau

Mumbai , Sept. 22

Fitch Ratings on Monday placed ITI Ltd's Rs 50 crore `I' Series long-term bonds, rated `AAA (ind)(SO)' on Rating Watch Negative ("RWN").

In January 2006, Fitch downgraded the rating of the Rs 150 crore (`J' Series) long-term Government of India-guaranteed bonds programme of ITI to `D(ind)(SO)' following the default by the company in repaying the principal on the due dates pursuant to the exercise of a put option to an extent of Rs 55 crore, said a press release from Fitch.

Going forward, the rating watch negative could lead to a multiple notch downgrade of the rating on the `I' series, unless there is strong evidence that demonstrates the trustee's commitment to rigidly enforce the payment mechanism, the release said.The `I' series bonds were allotted in three tranches. They have a five-year maturity and a put option at the end of three years.

More Stories on : Corporate Bonds | Credit Rating

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