Fitch, Moody's slash the credit ratings of Rcom yet again; stock drops

Distressed with surmounting debt burden, Reliance Communication was consequentially subjected to a cut in its credit rating by renowned rating agencies Fitch and Moody’s on Wednesday, June 7, 2017.
  
RCom witnessed a slash in its credit rating for the second time in the week, while it’s subsidiary GCX Limited also saw a down gradation in its credit rating from B2 to B3, during the same week.

Fitch lowered the company’s rating from CCC to RD, and Moody’s Investors Service slashed its credit rating to Ca1 from Caa1, as a token of high risk. 
   
The company reported a debt amount of Rs 45,000 crore at the end of March, while according to Moody’s estimates the company still has nearly Rs 19,300 crore amount as its debt.  

The telecom company received a seven month relief from the bankers on the repayment of loans. The company has bagged multiple debt waivers and forbearance period with a parallel incidence of non-payment, as Fitch affirmed.

The stock stooped as low as Rs 19.25 in the intraday trade on June 7, 2017, while at 11:10 hrs IST, the stock was quoting Rs 19.55, down by 2.74 per cent on the BSE.