India Ratings has downgraded Reliance Infrastructure’s bank loan facilities to ‘IND C‘ from ‘IND B‘/Stable. This action follows an order from the Enforcement Directorate (ED) placing a lien on the company’s bank accounts. The ED action and a show-cause notice from SEBI have contributed to this downgrade, impacting the company’s financial flexibility. The company strongly opposes this ratings action.
Rating Downgrade Details
India Ratings and Research (Ind-Ra) has downgraded Reliance Infrastructure Limited’s bank loan facilities from ‘IND B‘/Stable to ‘IND C‘. This downgrade was announced on December 18, 2025. The long-term rating has been downgraded, while the short-term rating is affirmed. The total amount impacted is INR18,602.3 million.
Reasons for Downgrade
The downgrade stems from an order by the Enforcement Directorate (ED) to place a lien on the company’s bank accounts, totaling approximately INR778.6 million, citing alleged violations of the Foreign Exchange Management Act (FEMA). The ED also provisionally attached properties worth about INR6,690 million. A show-cause notice from the Securities and Exchange Board of India (SEBI) for alleged violations has also contributed to the downgrade.
Company’s Response
Reliance Infrastructure strongly opposes this unwarranted and disproportionate rating action. The company believes it does not adequately reflect its improved underlying credit fundamentals.
Liquidity Position
As of September 30, 2025, the company held INR110 million in unencumbered cash. The ED order restricts access to INR778.6 million. The company has outstanding debt of INR6,973 million in the form of inter-corporate deposits (ICDs), with INR850 million secured and due for repayment in FY28.
Source: BSE
