Shares of Reliance Communications fell more than two per cent in the morning trade as credit rating agency Fitch has withdrawn the ratings of debt-ridden Reliance Communications for commercial reasons.
After opening the session at Rs 11.10, the stock 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 had said in a statement yesterday.
RCom also informed the stock exchanges that Fitch “has withdrawn ‘C’ rating of the company’s Long-Term Foreign and Local Currency Issuer Default Ratings and Bonds listed on the Singapore Stock Exchange due to commercial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 having a debt of around Rs 45,000 crore. Various entities, including China Development Bank and publicity consultant Fortuna Public Relations, have filed an insolvency case against RCom.