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Our Bureau

Mumbai, Sept. 15

CARE has revised downward the long-term bond issue of ITI Ltd, a telecommunication company, to CARE D (SO) [Single D (structured obligation)] from CARE AAA (SO) [Triple A (Structured obligation)] with credit watch.

The rating revision takes into account the delay in the interest payment of the `M'series long-term bond issue of the company, said a press release from the rating agency.

The above default has occurred despite the bonds being backed by an unconditional and irrevocable guarantee from the Department of Telecommunications, Government of India and a Structured Payment Mechanism (SPM) stipulated by CARE.

The SPM stipulates invocation of guarantee 15 days before the due date in case of non-availability of sufficient funds in the designated account.

However, the guarantee had not been invoked despite non-availability of funds in the account, the release said.

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