Future Retail has been downgraded from RD to D by Fitch after bankruptcy proceedings against the company were set into motion. A court order on 20 July showed that the Indian retailer had submitted a petition under India’s Insolvency and Bankruptcy Code, 2016 after it defaulted on more than INR 100bn ($1.3bn) worth of debt since the start of this year. Its inability to fulfill its obligations are a result of weak profitability and persistent operating losses since March 2020, aggravated by ongoing and costly litigation proceedings. The company was downgraded to D by S&P late last month after it missed a coupon payment on its dollar bonds; the grace period ends on 22 August.
Future Retail’s 5.6% 2025s are trading at 8.5 cents to the dollar, down by 2 points.
