Mahanagar Telephone Nigam Limited — Others, 19-12-2024: News Verification

Mahanagar Telephone Nigam Limited (MTNL) has clarified that its shares recently surged 6% following an upgrade of its long-term debt rating by CARE Ratings. Ratings for bonds amounting to ₹10,910 crore and ₹6,500 crore were upgraded to CARE AAA (CE), with a stable outlook, due to consistent government support and timely funding into designated escrow accounts. However, the company continues to face challenges with delays in servicing bank debts, highlighted by a total default amount of ₹1,383.34 crore and a high employee cost burden. Investor sentiment might see a positive outlook given the improved ratings and stable outlook, albeit risks remain concerning ongoing operational and liquidity issues.