Rating agencies keep close watch on Religare Enterprises

Credit rating agencies have intensified scrutiny of Religare Enterprises following recent disclosures. While one of these agencies has downgraded an instrument of its lending arm, others are reviewing various instruments and bank debt of the group they have rated, in the light of latest developments. On Wednesday, CARE ratings said it downgraded ratings for non-convertible debentures (NCDs) of Religare Finvest from AA- to A citing corporate governance and disclosure issues. “The revision in the rating of instruments of Religare Finvest Ltd (RFL) takes into account the corporate governance/disclosure issues as highlighted in the qualification/observations made by the auditor in the Audited Annual Report for FY17,” CARE said in a press release. Separately, Religare Enterprises in an exchange filing said it had withdrawn itself from ICRA’s rating of its short term debt/commercial paper saying “the Company does not intend to use the same in near future”. Rating agencies allow such …