New Delhi, Dec 6 (PTI) Shares of Reliance Communications
(RCom) today settled down 5 per cent on the bourses after
credit rating agency Fitch said it has withdrawn ratings of
the debt-ridden company for commercial reasons.
During the day, RCom stock opened at Rs 11.10 and slumped
5.64 per cent to touch an intra-day low of Rs 10.70 on the
BSE. At the end of today’s trading session the stock was
quoted at Rs 10.78, down 4.94 per cent.
Similar movement was seen on the NSE as well, where the
stock opened at Rs 11.35, then fell 5.72 per cent to touch an
intra-day low of Rs 10.60 and finally closed the day at Rs
10.75, down 5.29 per cent.
“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
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withdrawn ‘C’ rating of the company’s Long-Term Foreign and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.
This is published unedited from the PTI feed.