Moody: Moody’s withdraws RCom’s credit rating after missed payment
MUMBAI: Score company Moody’s stated on Friday it has withdrawn its credit standing on Reliance Communications, because it considers the Indian telecom operator to be in default for lacking an curiosity fee on its bonds that was due final week.
Debt-laden Reliance Communications posted a fourth straight quarterly loss final week and stated it had did not pay curiosity on some debentures, sending its shares tumbling.
“Moody’s has withdrawn the rankings as a missed scheduled fee of both curiosity or principal is taken into account a default underneath Moody’s definitions,” the ranking company stated in a word.
With internet of debt of Rs 44,300 crore as of end-March, RCom – as the corporate is broadly recognized – is probably the most leveraged listed Indian telecom firm, and together with its rivals has been hit badly by a value battle with upstart rival Reliance Jio, which is managed by India’s richest man, Mukesh Ambani.
RCom, managed by Ambani’s youthful brother, Anil, is trying to transform roughly Rs 7,000 crore of its debt to fairness through a strategic debt restructuring plan.
As a part of the plan, the corporate is underneath a debt standstill and therefore there aren’t any funds of curiosity or principal being made to RCom lenders or bondholders, stated Moody’s, including it was thus withdrawing its ‘Ca’ company household ranking on the corporate and its ‘Ca’ ranking on RCom’s senior secured notes.
Earlier in November, RCom signed a deal to promote its non-core direct-to-home enterprise, in a bid to scale back its debt load.