Reliance Capital’s US$13bil debt at risk after default rating

MUMBAI: Reliance Capital Ltd’s downgrade to default grade at Care Ratings Ltd places the debt of embattled tycoon Anil Ambani’s conglomerate at risk, reigniting India’s credit scare.

Mumbai-based Care cut Reliance Capital’s bonds by eight notches to D from BB, citing a delay in coupon payments on several of the lender’s non-convertible debentures, the rating company said in a Sept 20 statement. That raises the default risk on the debt of the Reliance ADAG Group, which has ballooned to about 939 billion rupees (US$13bil) at four of its biggest units.