Brickwork Ratings downgrades Vodafone Idea’s NCDs

NEW DELHI : Brickwork Ratings has downgraded its rating on non-convertible debentures (NCD) of Vodafone Idea Ltd (VIL) aggregating to ₹2,500 crore to BBB- from A-, the telecom company said in a filing with the exchanges.

The downgrade is on account of considerable impact of the adjusted gross revenue (AGR) liability on the financial performance of the company, resulting in huge losses, erosion of net worth and deterioration in the overall risk profile of the company, VIL said.

“VIL has provided for liabilities of ₹27,610 crore towards license fee and ₹16,540 crore towards spectrum usage charges in its H1 FY20 financial results. In addition, the company has been losing subscribers over the past eight quarters,” the ratings agency said.