Shares of Reliance Communications Ltd (RCom) slipped 3.6 percent today, on the back of yet another rating downgrade by international rating agencies Moody’s Investors Service and Fitch. For the second time in the span of a week, both rating agencies have downgraded the bonds issued by billionaire Anil Ambani’s troubled telecom company. The stock had fallen by 4 percent in the previous session as well.
The stock went down by 3.62 percent to close at Rs 18.65 on NSE. During the day, it declined by 3.61 percent to Rs 18.65. At BSE, shares of the company slipped 3.10 percent to end at Rs 18.75. On the volume front, 36.59 lakh shares of the company were traded on BSE and over 3.28 crore shares changed hands at NSE during the day.
Moody’s and Fitch again downgraded the bonds issued by RCom, even as the telecom firm received a seven-month respite from bankers on repayment of debt.
Moody’s Investors Service cut its rating to Ca from Caa1. The new rating suggests that the debt is highly speculative and likely in, or very near, default, with some prospect of recovery of principal and interest.”The outlook is negative,” Moody’s said in a statement. It had downgraded RCom to Caa1, indicating high risk, on May 30.
“The outlook is negative,” Moody’s said in a statement. It had downgraded RCom to Caa1, indicating high risk, on May 30.
Fitch Ratings lowered RCom’s rating to RD from CCC, saying the situation constituted a restricted default, as multiple waivers or forbearance periods have been extended in parallel following a non-payment event. Fitch last cut RCom’s rating on June 2.
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RCom, on Wednesday, rejected the credit rating cuts by Moody’s and Fitch saying that the agencies’ views apply only to it’s $300 million bonds, which are being serviced regularly.
“These bonds constitute about 4 percent of the total debt of the company. The bonds have always been serviced regularly on the due dates and are fully current in servicing, as on date,” the company said.