Latest News | Care Downgrades Rating of Future Enterprises' NCD Issue

New Delhi, Apr 22 (PTI) Care Ratings has downgraded the credit rating of Future Enterprises' Non-Convertible Debenture (NCD) issue, as per a regulatory filing.

The ratings of NCD issue of Series XXII-A, XXII- S and XXIII have been downgraded to 'CARE D' from 'CARE C', the Kishore Biyani-led Future Group company said in the BSE filing.

Instruments with 'CARE D' rating are in default or expected to be in default soon.

The downgrade was "on account of the default in payment or likely to be the default of NCD Interest", the filing added.

Last week, a consortium of 19 lenders of Future Enterprises Ltd (FEL) had agreed to extend repayment of loans by up to two years, while converting unpaid interest into a funded interest term loan.

The penal charges too will be waived off under the recast plan.

The recast plan has been approved by the K V Kamath-led expert committee constituted by the RBI.

According to a December 2020 report from Care Ratings, Future Enterprises has a loan of Rs 1,777 crore.

This includes long-term term loans of Rs 550 crore, long-term fund-based bank facilities of Rs 625 crore, and short-term non-fund based bank facilities of Rs 602 crore.

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