Rating agency Icra has placed a credit rating of Coffee Day Enterprises on watch with negative implications.
The rating agency has placed on watch with negative implications, revising the rating from watch with developing implications, after of Siddhartha went missing that sent shockwaves in the India Inc.
Siddhartha’s body was, on Wednesday morning, fished out of the Netravati river in Karnataka.
“The ratings have been put on watch with negative implication (revised from watch with developing implication) as the aforesaid development may have a negative impact on the operations of CDEL, the extent of which cannot be ascertained as yet, given the nascent stage of developments,” the rating agency said.
Further, as the aforementioned development may have a critical bearing on the group’s operations and credit profile, ICRA will continue to monitor further developments and will finalise the rating action once more clarity emerges on the same, it added.
The agency rates the debt of Siddhartha’s venture worth Rs 315 crore.