Nirav Modi-linked Firestar Diamond’s bank facilities under rating watch

Mumbai: India Ratings on Thursday placed bank facilities of Firestar Diamond International Pvt Ltd, a company linked to Nirav Modi who is at the centre of $1.77 billion banking fraud at Punjab National Bank, under rating watch negative (RWN).

Fund and non-fund based working capital facilities worth Rs382 crore and Rs106 crore, respectively, have been put under the rating watch, the rating company said in a release.

It also said that rating watch is initiated because of the uncertainty surrounding the potential impact on the bank credit to First International Pvt. Ltd (FIPL), which is related to companies named by PNB as parties in a fraud.

“The RWN reflects a similar rating action on FDIPL’s parent company, Firestar International Private Limited, which has extended an unconditional, absolute and irrevocable guarantee towards the rated bank facilities. FIPL’s ratings are based on a consolidated view of its businesses and financials,” India Ratings said.

PNB filed a complaint with the Central Bureau of Investigation alleging that Modi and companies linked to him fraudulently acquired PNB guarantees that they later used to obtain loans from abroad.livemint