Idly flipped through Go Airlines draft RHP. Saw that the company disclosed a credit rating of A- by Acuite Ratings and Research. Felt this was too high for a company literally dependent on the IPO to survive. Turns out, that's not the only rating it has.
The rating disclosed in the DRHP is only the most recent rating, it has also been rated BBB+ by India Ratings (Fitch) and BB+ by Brickworks Ratings in mid 2020. In 2020, both agencies had the status of 'Rating Watch Negative' or 'Issuer Not Cooperating'.
The heavily indebted Macrotech Developers (Lodha) provided a 12 month credit history with disclosures on both rating agencies employed by them. Public can see the trend in credit ratings for Lodha, but for Go Airlines the public will not see the series of downgrades from 2018.
Go Airlines disclosed only the Acuite rating and completely omitted the other 2 ratings. As of date it seems those ratings are still subsisting, but not disclosed. Selective disclosure is against public interest, especially for a heavily-indebted company.
While DRHP always highlights risks as something that "may" happen, credit reports are usually far more blunt. They are public documents too. Why aren't credit reports mandatorily part of the offer documents? Strong case to be made for annexing them to RHPs.
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