CRISIL has downgraded the rating of Rs 35 billion non-convertible debentures of Vodafone Idea Limited (VIL).

The ratings have been downgraded by one level to ‘IND BBB’ from ‘IND A+’ and placed in “rating watch negative” indicating a chance of further lowering of its ability to pay for the debt note.

CRISIL has downgraded the ratings as it expects a significant deterioration in VIL’s financial risk profile on account of the potential payout against the adjusted gross revenue (AGR) related liability, post dismissal of the review petition by the Supreme Court.

The NCDs were issued by erstwhile Vodafone Mobile Services. Earlier, the rating was downgraded from BBB to BBB minus by India Rating also.