Shares of Reliance Communications (RCom) on Wednesday settled down 5 per cent on the bourses after credit rating agency Fitch said it has withdrawn ratings of the debt-ridden company for commercial reasons.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 Wednesday’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 statement on Tuesday.
RCom also informed stock exchanges that Fitch ‘has withdrawn ‘C’ rating of the company’s long-Term Foreign and local Currency Issuer Default Ratings and Bonds listed in Singapore Stock Exchange due to commercial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.