Vodafone Idea declines 15% on credit rating downgrade; tanks 44% in 7 days

Shares of Vodafone Idea continued their decline, falling 15 per cent to Rs 2.91 on the BSE on Tuesday, after Care Ratings (CARE) downgraded its ratings on the long-term bank facilities and non-convertible debentures.

The stock of the telecom services firm was trading lower for the seventh straight day, plunging 44 per cent during the period. It was trading close to its all-time low price of Rs 2.61 touched on November 15, 2019.

“The downgrade inter-alia is on account of significant erosion in the overall risk profile of the company while taking into cognizance of the financial impact of no relief being granted on modification plea on 14th February 2020 of telecom companies (telcos) seeking new schedule of Adjusted Gross Revenues (AGR) dues by the Supreme Court and significant losses to the tune of Rs 6,453 crore in Q3FY20,” the company said in an exchange filing.