Rating firms monitoring MTNL as telco misses escrow transfer for bond payments

Rating agencies are monitoring developments and considering fresh courses of action for state-owned Mahanagar Telecom Nigam Limited (MTNL), which has been unable to transfer sufficient funds to an escrow account for the payment of semi-annual interest of a bond.

In an update on Friday, India Ratings & Research said that the breach of condition of the debenture trustee deed is considered as an event of default as per the intimation received by the agency.