Press Release August 30, 2012

CARE ASSIGNS ‘CARE AAA (SO)’ RATING TO THE PROPOSED NON-CONVERTIBLE DEBENTURES ISSUE OF RELIANCE BROADCAST NETWORK LIMITED

Rating

Instrument Amount Ratings1 Remarks (Rs. crore) Proposed Non-Convertible CARE AAA (SO) 150 Assigned Debentures (NCD)@ [Triple A (Structured Obligation)] @ Backed by an unconditional and irrevocable corporate guarantee extended by Limited.

CARE’s rating on the proposed NCD issue of Reliance Broadcast Network Limited (RBNL) factors in the credit enhancement in the form of an unconditional and irrevocable corporate guarantee extended by Reliance Capital Limited (RCL, rated CARE AAA [long-term debt]/CARE AA+ [subordinated debt]/CARE PP-MLD AAA [equity-linked debenture]) towards timely servicing of the debt obligations.

Rating Rationale for RCL

CARE’s ratings on RCL reflect strong brand name and the strength of the and the implicit support expected from the group, given the strategic importance of the company. The ratings factor in the diversified revenue profile and strong business franchise of the subsidiaries/associates in asset management, life insurance, general insurance, equity broking and commercial & housing finance. The ratings also build in high networth base of RCL. In October 2011, RCL divested 26% stake in life insurance. The entire transaction proceeds of Rs 3,062 crore (USD 680 million) from Nippon Life Insurance have duly been received. Subsequently, in August 2012, RCL completed the sale of 26 per cent stake in Reliance Capital Asset Management (RCAM) to Nippon Life Insurance. The entire transaction proceeds of Rs 1,450 crore (USD 290 million) has been duly received from Nippon Life Insurance. These divestments have significantly strengthened the networth and liquidity profile of RCL. The ratings also factor in the volatile nature of RCL’s income profile by virtue of variability of its investment income, increasing the exposure to associates / subsidiaries, some of which are in the expansion stage and are yet to turn profitable. However, improving the asset quality and high financial flexibility are positive measures which strengthen the company’s profile.

RCL’s ability to manage future capital requirements of subsidiaries and associates without unduly impacting the gearing levels and liquidity profile and maintain asset quality position are key rating sensitivities.

1Complete definition of the ratings assigned are available at www.careratings.com and other CARE publications Credit Analysis & Research Ltd., 4th Floor, Godrej Coliseum, Somaiya Hospital Road Sion East, – 400 022. INDIA Tel # 022 6754 3456 Fax # 6754 3457

Press Release Background

RBNL, incorporated on December 27, 2005, is a part of the Reliance group, led by Mr Anil Ambani. The company is a multi-media entertainment company with presence across radio broadcasting (92.7 BIG FM), television content production (BIG Productions), television broadcasting (BIG CBS and ), experiential marketing/ live entertainment (BIG Live) and out-of-home (OOH) media (BIG Street).

Profile of the Guarantor (Reliance Capital Limited) Reliance Capital Ltd, incorporated in 1986, is one of the major companies of the Reliance group, led by Mr Anil Ambani. RCL ranks among the top four private sector financial services companies in India in terms of networth. Although the company has completed around 25 years of existence, it started commercial operations on a larger scale about six years ago. RCL is present in all the verticals of financial services and lending activities through its subsidiaries and group companies. These include asset management, life and general insurance, commercial finance, broking and distribution, private equity, asset reconstruction and other varied financial services. RCL on standalone basis reported Profit After Tax (PAT) of Rs.519 crore on total income of Rs.3,317 crore in FY12 (refer to the period April 1 to March 31) as compared to PAT of Rs. 229 crore on a total income of Rs.1,971 crore in FY11. On a consolidated basis, RCL reported PAT of Rs. 458 crore on total income of Rs. 6,627 crore in FY12 as compared to PAT of Rs.291 crore on total income of Rs. 5,536 crore in FY11.

For the detailed rationale of RCL, please refer to our website www.careratings.com Analyst Contact Name: Dhaval Patel Tel - +91-22-6754 3438 Email: dhaval.patel @careratings.com

Mr V.K. Chopra, who is a Non-Executive Director in Reliance Capital Pension Fund Ltd. (a wholly owned subsidiary of Reliance Capital Asset Management Ltd. which in turn is a subsidiary of Reliance Capital Ltd., is one of CARE’s Rating Committee Members. To comply with the regulations the member has not participated in the rating process and the rating committee meeting.

CARE has classified instruments rated by it on the basis of complexity. This classification is available at www.careratings.com. Investors/market intermediaries /regulators or others are welcome to write to [email protected] for any clarifications.

Credit Analysis & Research Ltd., 4th Floor, Godrej Coliseum, Somaiya Hospital Road Sion East, Mumbai – 400 022. INDIA Tel # 022 6754 3456 Fax # 6754 3457

Press Release

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