Brick ratings downgrade Vodafone Idea NCD rating

New Delhi, November 8 () Vodafone Idea Ltd said Friday that Brickwork Ratings has lowered the company's rating on non-convertible bonds (NCDs) citing a recent court ruling on adjusted gross income and the extension of the timeline with regarding the sale of participation in Indus Tower to Bharti Infratel.

The rating agency has downgraded the Vodafone Idea Ltd (VIL) rating from 'A +' (with a negative outlook) to 'A-', which claims to have negative implications.

Hereby, it is reported that Brickwork Ratings has lowered its rating of non-convertible bonds based on the rating justification uploaded on its website today (Friday), VIL said in a regulatory presentation.

Last month, VIL had faced a similar discount from Care Rating in its banking and ENT facilities in the long term.

It is possible that Airtel, Vodafone Idea and other telecommunications operators have to pay the government a huge amount of rupees of 1.4 lakh after the recent order of the Supreme Court that caused shocks in an industry that already deals with billions of dollars in debt and an intense tariff war to retain customers.

The Supreme Court, last month, confirmed the government's position on the inclusion of non-telecommunications business revenues when calculating the annual AGR of the telecommunications companies, a part of which is paid as a license and spectrum fee to treasure. According to the calculations of the telecommunications department, Bharti Airtel faces a responsibility of around Rs 42,000 crore after including license fees and charges for spectrum use, while Vodafone Idea may have to pay around Rs 40,000 Rs million Jio may have to pay around Rs 14 crore. MBI KRH HRS

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