CARE has revised the creditworthiness of Reliance Capital Limited citing reduced fund-raising ability amid defaults by RCL’s subsidiaries.

As per the CARE report, Reliance Capital is now rated triple-B, revised down from single A for three sets of debt instruments, Subordinated debt, Long-term debt, and Market-linked debentures.

The report further mentioned that the ratings of Reliance Capital factors is expected to further reduce the group’s financial flexibility and decline the company’s ability to raise funds from the markets.

CARE stated that Reliance Capital’s financial risk profile is characterized by high dependence on planned disinvestments for debt servicing, depletion of liquidity, and delays in fructification of such disinvestments.

CARE data report showed that cash and bank balances of the company stood reduced to Rs 47 crore as on April 30, 2019.