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Shares of Fortis Healthcare and Religare fell as India Ratings has downgraded the holding co NCDs.
Shares of Fortis Healthcare Ltd and Religare Enterprises Ltd fell as much as 12.8 per cent and 8.9 per cent, respectively.
India Ratings and Research has downgraded some non-convertible debentures (NCDs) and loans held by RHC Holding Pvt Ltd (RHC), which owns shares in Fortis and Religare, to default levels of “IND D” and “IND C”.
Previously the credit ratings agency had a rating of “IND A” for some of RHC's NCDs and loans, while others were unrated.
India Ratings says RHC defaulted on coupon obligations for NCDs due on June 27, amounting to principal of Rs 200 crore ($31.08 million).
“The downgrade of ratings on other debt instruments reflects an impaired debt servicing capability due to a stretched liquidity position,” says India Ratings.
Fortis shares hit their lowest since February 12, 2016; the stock was down 9.9 per cent this year as of Friday's close.
Religare shares were down 54.6 per cent this year as of Friday's close ($1 = 64.3450 Indian rupees).
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