Mumbai: India Ratings, an affiliate of Fitch, has downgraded the Wadia group’s operating holding company, Bombay Burmah Trading Corporation’s (BBTC’s) long-term ratings to IND A+ from IND AA with a negative outlook.
The rating agency stated that the company has borrowed heavily to support group entities. It has also faced insolvency proceedings for Go Airlines India, Sebi action to ban Bombay Dyeing and Manufacturing and its promoters from the securities market for two years, and continued losses at the standalone level of BBTC.
Go Air is a 33% associate of BBTC and a 44% associate of Bombay Dyeing. On the positive side, the company has been receiving a consistent stream of dividends from Britannia Industries.
