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.
CRISIL Ratings has maintained MTNL's bond and NCD ratings at 'AAA (CE)/Watch Negative' for Rs 6,500 crore bonds and Rs 20 crore NCDs. The rating has been on watch negative since September 2024 due to non-adherence to the structured payment mechanism for government-guaranteed bonds, where funding was delayed by 1-2 days beyond the T-3 deadline. Subsequent payments have adhered to the mechanism, but the watch remains. Additionally, MTNL's loan account with Bank of India slipped into NPA category on September 4, 2024. CRISIL also reaffirmed an unsupported standalone rating of 'Crisil D' citing continuing delays in debt servicing since June 2024, weak financial risk profile with accumulated losses, large debt and negative networth. The company reported revenue of Rs 956 crore with a net loss of Rs 3,107 crore for 2026.
The rating watch negative signals ongoing concern about payment mechanism compliance despite government backing. The unsupported 'Crisil D' rating reflects severe standalone credit weakness, indicating the company's ability to service debt without government support is highly questionable. Bondholders are protected by the unconditional GOI guarantee, but the stock faces pressure from operational losses and NPA classification.