Mahanagar Telephone Nigam Limited has informed the Exchange about Credit Rating
MTNL · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
India Ratings has maintained its 'IND AAA(CE)' rating on MTNL's ₹175.71 billion worth of non-convertible debentures on 'Rating Watch with Negative Implications.' The AAA rating is supported by a Government of India pre-default guarantee and remains unchanged in grade. However, the agency has also affirmed MTNL's standalone (unsupported) rating at 'IND D,' citing consistent delays in bank debt servicing. MTNL's bank accounts were classified as NPA by all bankers on September 4, 2024, and the company has been tagged an 'incipient sick central public sector enterprise' by the government. Revenue fell to ₹7.0 billion in FY25 from ₹8.0 billion in FY24, with operating losses of ₹4.8 billion and gross debt of ₹324.4 billion. The government-backed bond escrow account continues to service NCD obligations on time, but the agency is awaiting clarity on the funding process going forward.
The NCD rating stays at AAA only because of the sovereign guarantee, not MTNL's own credit strength. The standalone IND D rating and existing NPA status signal serious financial distress for the company, though bondholders remain protected by the GoI guarantee. Expect continued pressure on the stock and heightened scrutiny around the proposed BSNL-MTNL merger and government support timelines.