Shares in Reliance Infrastructure fell 4.30 per cent after rating agency Crisil downgraded its rating on the company's debt programmes and long-term bank facilities to "A+/Negative" from "CRISIL AA-/Negative".
Crisil said the rating revision reflects lower revenue visibility in the company's engineering, procurement, and construction business coupled with higher-than-expected exposure to group companies.
Reliance Infra's group company exposure increased significantly to Rs 12,600 crore as on March 31, 2013 from Rs 10,100 crore as on March 31, 2012, which is contrary to the agency's expectations.
Crisil added that the impact of these developments is partially offset by the incremental annual cash flow expected from the recovery of regulatory assets in its Mumbai distribution business.
Copyright Thomson Reuters 2013
Crisil said the rating revision reflects lower revenue visibility in the company's engineering, procurement, and construction business coupled with higher-than-expected exposure to group companies.
Reliance Infra's group company exposure increased significantly to Rs 12,600 crore as on March 31, 2013 from Rs 10,100 crore as on March 31, 2012, which is contrary to the agency's expectations.
Crisil added that the impact of these developments is partially offset by the incremental annual cash flow expected from the recovery of regulatory assets in its Mumbai distribution business.
Copyright Thomson Reuters 2013
