Reliance Capital shares tumble over 11% after CARE Ratings downgrades company's long-term debt program

New Delhi: Shares of Reliance Capital on Monday dropped over 11 percent after CARE Ratings downgraded the company’s long-term debt program. The scrip tanked 11.32 percent to Rs 27.80 – its 52 week low – on the BSE. On the NSE, it dropped 11.34 percent to its one-year low level of Rs 27.75. [caption id=“attachment_5263731” align=“alignleft” width=“380”] Representative image. Reuters[/caption] CARE on Friday downgraded rating for the company’s long-term debt program, market-linked debentures and subordinated debt to CARE D, due to the alleged “delay” in payment of interest by one day. Meanwhile, Reliance Capital has slammed CARE Ratings for downgrading its debt and called actions by the rating agency “pre-meditated and prejudiced”. Reliance Capital said there was a delay in payment of interest for non-convertible debentures (NCDs) due to a technical glitch and the payment was made on the next working date. Reliance Capital said CARE has acted in a pre-meditated and prejudiced manner, and has even suppressed the above facts completely in its rating action letter, thereby making it appears as if the company had defaulted in payment of interest by a day, whereas the reality is documents had been provided to CARE that proved funds had duly been arranged on the due date, and the alleged delay was on account of technical glitches.