Fitch withdraws ratings on Rolta India

Fitch Ratings has withdrawn its ratings on India-based Rolta India Limited, after the Indian IT company said it was no longer interested in continuing with the arrangement.

“Fitch is withdrawing the ratings as Rolta has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the rating. Accordingly, Fitch will no longer provide ratings or analytical coverage for Rolta,” the ratings agency said.

“The company is currently working with lenders to find a solution to its liquidity issues following default on its two US dollar bonds. During 2016 the company also disclosed that it had been unable to meet an instalment due on its secured bank debt, although we understand that none of Rolta’s secured bank debt was overdue as of 31 December 2016,” Fitch added.

Rolta has had a rather interesting history of engagements with ratings agencies and research firms. Glaucus Research Group, a short seller based in the US, had even brought out a report on the company.

In May last year, S&P placed Rolta India on watch negative on chances of possible default while downgrading the firm’s long-term corporate credit rating to CCC- from B+. The agency then attributed the downgrade to the company having missed its interest payment on the 10.75% 2018 unsecured notes.

In December, Shares of Rolta rose over 13 per cent after the company reported a doubling of net profit to Rs 54.3 crore for the quarter ended September 30.