Mumbai (Maharashtra) [India], Dec 9 (ANI): Care Ratings has downgraded Dish TV's short-term bank facilities rating to D from A4-plus.
The agency in its rationale took into consideration the default by Dish TV in payment of its short-term loan totalling amounting to Rs 250 crore.
Following the development, Dish TV reiterated its intention to repay all its debts as and when they become due in the future.
The company has been drawing on its internal cash accruals to fund its capital expenditure for more than six quarters now. In addition, it has serviced its debt and interest obligations on a consolidated level to the tune of Rs 850 crore in the current fiscal.
"Debt and interest payment obligations falling due after the particular incident of non-service have also been fulfilled on time," it said in a statement.
The company's deferral to service the loan amount is due to bunching of repayment obligations and utilisation of funds for other business requirements including both capital expenditure and payment of operating liabilities to broadcasters and suppliers.
"The default in debt repayment was thus a result of a temporary cash shortfall due to peak payment commitments to suppliers," it said.
"Dish TV while being cautious about its cash expenditures also remains optimistic about improvement in its liquidity situation going forward. The company is in touch with its banking partners and hopes to get alternate credit facilities to finance its regular capex so as to normalise the utilisation of its cash flow towards debt repayment."(ANI)