Moody's downgrades RCL rating with negative outlook

Reliance Communications Limited informed, that the Moody's Investors Service, Inc. (Moody's), an International rating agency has revised the company's corporate family rating and Senior Secured Notes rating from 'B1' to 'B2' with negative outlook.

Moody's said its negative outlook on Reliance Communications is mainly because of the uncertainty around the timing and completion of its announced restructuring.

The company's Indian operations, which contributes around 85 per cent of earnings before interest, tax, depreciation and amortisation (EBITDA), stated by Moody, for 6-12 months, will remain under pressure due to the increasing competition in India's mobile sector and demonetisation.

Reliance Communications, an offshoot of the Reliance Group, is a private sector business in telecommunications. The company has a customer base of above 118 million including over 2.6 million individual overseas retail customers.