CRISIL Ratings Continue MTNL's Rating on 'Watch Negative'
CRISIL Ratings continues MTNL's long-term debt instruments on 'Rating Watch with Negative Implications' due to non-adherence to structured payment mechanisms and NPA status of loan account with Bank of India.
The rating watch and NPA status could affect investor confidence and the company's ability to raise funds.
The rating watch with negative implications and the NPA status of MTNL's loan account indicate potential financial difficulties and negative sentiment.
* CRISIL Ratings has continued its rating on the long-term debt instruments of Mahanagar Telephone Nigam Ltd (MTNL) on 'Rating Watch with Negative Implications'. * The rating was placed on negative watch on September 11, 2024, following the non-adherence to the structured payment mechanism for government-guaranteed bonds. * Crisil Ratings has noted the consistent adherence to the trustee-administrated structured payment mechanism for timely funding of the designated escrow account by the government towards payments for government-guaranteed bonds. * Crisil Ratings has also noted that MTNL’s loan account with Bank of India (BOI) slipped into non-performing account (NPA) category on September 4, 2024. * MTNL's operating revenue declined to ₹148 crore in the first half of fiscal 2026 from ₹359 crore in the corresponding period of the previous fiscal. As a result, the operating loss widened to ₹402 crore from ₹229 crore. * The decline in operating revenue is attributed to the service agreement with Bharat Sanchar Nigam Ltd (BSNL), effective January 1, 2025, which has led to the migration of certain customers in Delhi and Mumbai to BSNL, resulting in non-recognition of revenue by MTNL. * Crisil Ratings has reaffirmed its ‘Crisil D’ unsupported rating for MTNL owing to continuing delays in servicing of debt since June 2024 due to stretched liquidity.
What to do with a filing like this
Mahanagar Telephone Nigam Limited filed this with the NSE as a statutory disclosure, categorised under credit ratings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Mahanagar Telephone Nigam Limited. Read the original for the full detail.