Moody’s downgrades Ola’s rating; flags risk of loan covenant breach

Ratings agency Moody’s has downgraded the credit rating of ride-hailing firm Ola’s parent, ANI Technologies, and assigned a negative outlook, citing weakening operating performance that is straining liquidity and raising the risk of a breach of loan covenants.

“The downgrade to Caa1 and negative outlook reflect the ongoing weakness in Ola’s operating performance that is eroding liquidity and raising the risk of a covenant breach in the coming months,” said Sweta Patodia, assistant vice president and analyst at Moody’s Ratings.

Loan…