Reliance Capital (Rel Cap) will not be able to service its debt in a timely manner following the downgrading of its bond programme by Care Ratings, which triggered an accelerated repayment which otherwise was to take place in a phased manner over eight years, the company said.

In September 2019, Care Ratings had downgraded the Anil Ambani-controlled Rel Cap’s entire outstanding debt programme to default “Care D” rating.

Reliance Capital had objected to the rating action, calling it “completely biased, unwarranted and unjustified rating action”.

CARE had downgraded RCap's long-term debt programme, market linked debentures and subordinated debt due to delay in payment of interest.

On September 21, a day after the rating action, RCap had said the rating agency's action was unwarranted as there was no overdue on principal or interest payment to any lender.