CARE Ratings has given ‘issuer not cooperating’ tag to the ‘D’ rating assigned by it to the bank facilities aggregating ₹96.66 crore of The Mobile Store Services Ltd (TMSSL), which is a part of the Essar Group.

As per rating definition, instruments with ‘D’ rating are either in default or are expected to be in default soon.

CARE, in a statement, said it has been seeking information from TMSSL to monitor the ratings. “However, despite our repeated requests, the company has not provided the requisite information for monitoring the ratings,” it added.

In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the publicly available information. Further, according to the agency, TMSSL has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement.

“The ratings on TMSSL will now be denoted as ‘CARE D; ISSUER NOT COOPERATING’. Users of this rating (including investors, lenders and the public at large) are hence, requested to exercise caution, while using the above rating(s),” said the rating agency.

CARE Ratings reasoned that the ratings assigned to the bank facilities of TMSSL has taken into account feedback received from its bankers about instances of delays in servicing of the debt obligations by the company.

The agency cited continuous delays in servicing of interest and default in repayment of debt obligation by the company as a key rating weakness.

TMSSL is engaged in the business of distribution of telecom, consumer electronics and related products, including mobile handsets, accessories, domestic appliances and other consumer durable products. It is a step-down subsidiary of Essar Global Ltd (the ultimate holding company).

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