S&P cuts Future Retail

S&P said it lowered the issuer credit rating on Future Retail Ltd. to SD from CCC-, because the company failed to repay the principal on its onshore debt, even within the review period allowed by Reserve Bank of India. However, S&P affirmed the CCC- rating on the retailer’s dollar-denominated senior unsecured notes.

Future Retail was supposed to pay Rs 35 billion on Dec. 31, 2021, on the company's bank borrowings as part of a one-time restructuring plan implemented by the onshore lenders in April. The company was allowed 30 days to cure the default. Future Retail did not cure the default amid an unsuccessful attempt to monetize its small-format stores and insufficient cash flows to meet the sizable repayment obligation, the agency said.

S&P said it affirmed the notes because it expects Future Retail to service the semi-annual coupon within the grace period. The coupon was due Jan 24.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.