Fitch lowers Future Retail to RD

Fitch Ratings said it downgraded Future Retail Ltd.’s long-term issuer default rating to RD from C following the company's announcement that it has completed the restructuring of the bulk of its onshore debt, which Fitch views as a distressed debt exchange.

At the same time, Fitch said it affirmed the rating on the company’s $500 million 5.6% senior secured notes due 2025 at C, with a recovery rating of RR5.

“The DDE provides relief on debt servicing requirements until 30 September 2021, but we believe the resultant debt structure and maturity profile remain unsustainable,” Fitch said in a news release.

“Therefore, we regard the relief as another temporary measure following the relief provided under India's central bank pandemic-related schemes last year. The restructuring does not meaningfully address FRL's financial stress, which we regard as essential for an upgrade after the completion of the DDE.”

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