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Mahanagar Telephone Nigam Limited (MTNL) received a reaffirmation of its bond and bank facility ratings from CARE Ratings. Long-term bank facilities totaling ₹2,803.81 crore are rated CARE D, indicating ongoing issues with timely debt servicing. On the other hand, long-term bonds were upgraded to CARE AAA (CE) with a stable outlook, following consistent government support and timely infusions to escrow accounts for bond payments. This positive trend suggests potential stability amidst challenges. However, substantial cash flow issues persist, with a reported default amount of ₹1,383.34 crore due to delays in servicing bank loans, exacerbated by high employee costs that remain over five times the industry average. Investors should monitor these ratings closely, as MTNL faces significant liquidity pressures despite the government's backing.