RCom dips over 2 per cent as Fitch withdraws ratings

RCom dips over 2 per cent as Fitch withdraws ratings
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New Delhi: Shares of Reliance Communications on Wednesday fell more than two per cent in morning trade on bourses after credit rating agency Fitch said it has withdrawn ratings of debt-ridden Reliance Communications for commercial reasons.

Reliance Communications stock on Wednesday opened at Rs 11.10 and slumped 2.38 per cent to touch an intra-day low of Rs 11.07 on the BSE. Similar movement was seen on the NSE as well, where the stock opened at Rs 11.35, then fell 2.64 per cent to touch an intra-day low of Rs 11.05.

“Fitch has chosen to withdraw the ratings on Rcom for commercial reasons. Accordingly, Fitch will no longer provide ratings or analytical coverage for RCom,” it said in a statement yesterday.

RCom also informed stock exchanges that Fitch “has withdrawn ‘C’ rating of the company’s Long-Term Foreign and Local Currency Issuer Default Ratings and Bonds listed in Singapore Stock Exchange due to commercial reasons”.

RCom said it has already informed all the stakeholders that the lenders of the company have invoked strategic debt restructuring (SDR) scheme as per RBI guidelines.

RCom is estimated to be in debt of around Rs 45,000 crore. Various entities, including China Development Bank and publicity consultant Fortuna Public Relations have filed insolvency case against RCom.

PTI