MUMBAI: Rating company Moody's mentioned on Friday it has withdrawn its credit standing on Reliance Communications, because it considers the Indian telecom operator to be in default for lacking an passion payment on its bonds that used to be due remaining week.
Debt-laden Reliance Communications posted a fourth directly quarterly loss remaining week and mentioned it had failed to pay passion on some debentures, sending its shares tumbling.
"Moody's has withdrawn the ratings as a missed scheduled payment of either interest or principal is considered a default under Moody's definitions," the rating company mentioned in a notice.
With internet of debt of Rs 44,300 crore as of end-March, RCom - as the corporate is widely recognized - is probably the most leveraged listed Indian telecom corporate, and together with its opponents has been hit badly by way of a price competition with upstart rival Reliance Jio, which is managed by way of India's richest man, Mukesh Ambani.
RCom, managed by way of Ambani's younger brother, Anil, is making an attempt to transform roughly Rs 7,000 crore of its debt to fairness by the use of a strategic debt restructuring plan.
As a part of the plan, the corporate is under a debt standstill and therefore there are no payments of passion or essential being made to RCom lenders or bondholders, mentioned Moody's, adding it used to be thus withdrawing its 'Ca' company circle of relatives rating on the corporate and its 'Ca' rating on RCom's senior secured notes.
Earlier in November, RCom signed a deal to sell its non-core direct-to-home industry, in a bid to reduce its debt load.
Debt-laden Reliance Communications posted a fourth directly quarterly loss remaining week and mentioned it had failed to pay passion on some debentures, sending its shares tumbling.
"Moody's has withdrawn the ratings as a missed scheduled payment of either interest or principal is considered a default under Moody's definitions," the rating company mentioned in a notice.
With internet of debt of Rs 44,300 crore as of end-March, RCom - as the corporate is widely recognized - is probably the most leveraged listed Indian telecom corporate, and together with its opponents has been hit badly by way of a price competition with upstart rival Reliance Jio, which is managed by way of India's richest man, Mukesh Ambani.
RCom, managed by way of Ambani's younger brother, Anil, is making an attempt to transform roughly Rs 7,000 crore of its debt to fairness by the use of a strategic debt restructuring plan.
As a part of the plan, the corporate is under a debt standstill and therefore there are no payments of passion or essential being made to RCom lenders or bondholders, mentioned Moody's, adding it used to be thus withdrawing its 'Ca' company circle of relatives rating on the corporate and its 'Ca' rating on RCom's senior secured notes.
Earlier in November, RCom signed a deal to sell its non-core direct-to-home industry, in a bid to reduce its debt load.
Moody's withdraws RCom's credit rating after missed payment
![Moody's withdraws RCom's credit rating after missed payment]()
Reviewed by Kailash
on
November 18, 2017
Rating:
