Shares of Dish TV India surged more than 14 percent in the early trade on Monday after the company came out with a clarification on CARE's downgrade. At 11:22 am, shares of Dish TV India traded 13.55 percent higher at Rs 14.25 on the NSE.
CARE has revised its rating on bank facilities of the company to CARE D from CARE A4+. The revision in the rating assigned takes into account default in payment of short-term loan due on November 28, 2019, CARE said.
However, Dish TV said that the default in debt repayment was a result of a temporary cash shortfall due to peak payment commitments to suppliers. The DTH service provider reiterated its intention to repay all its debts as and when they become due in the future.
“The company’s deferral to service the loan amount is due to bunching of repayment obligations and utilisation of funds for other business requirements including, both capital expenditure and payment of operating liabilities to broadcasters and suppliers,” Dish TV said in a statement.
The DTH services provider remained optimistic about improvement in its liquidity situation going forward and added it is in touch with its banking partners and hoped to get alternate credit facilities to finance its regular capex so as to normalise the utilisation of its cash flow towards debt repayment.
The company has serviced its debt and interest obligations, on a consolidated level, to the tune of Rs 8,500 million in the current fiscal. Debt and interest payment obligations falling due after the particular incident of non-service have also been fulfilled on time, it said.