Reliance, SBI fund houses reduce NAV of some debt, hybird plans, says report

Rating downgrades in securities of Reliance Home Finance and Reliance Commercial Finance affected the net asset value (NAV) of some schemes in the debt and hybrid categories of Reliance Mutual Fund and SBI Mutual Fund. The NAVs of these schemed fell by 0.88 percent and 3 percent after the two mutual fund houses have slashed their holdings in these securities, reported The Economic Times, citing industry sources.

CARE Ratings agency cut its ratings on Reliance Home Finance's long-term debt programme of Rs 4,979 crore and long-term bank facilities and non-convertible debentures of Reliance Commercial Finance worth Rs 12,700 crore to default.

Rating agency ICRA has also downgraded Reliance Capital’s short-term debt worth Rs 950 crore to A4. ICRA said, “The rating watch is with negative implications due to the company’s slow pace of monetization of the non-core investments and liquidity position in Reliance Commercial Finance Limited (RCF) and Reliance Home Finance Limited (RHF).”