Fitch Ratings has withdrawn ratings of debt-ridden Reliance Communications (RCom) citing commercial reasons, while the firm will no longer provide ratings or analytical coverage for the telecom firm.

The rating agency has withdrawn Rcom’s long-term foreign and local currency issuer default ratings of 'Restricted Default' and the rating on RCom's $300 million 6.5 per cent senior secured notes due 2020 of 'C' with Recovery Rating of 'RR4', it said in a statement.

On October 30, 2017, RCom had announced a plan to restructure its Rs 45,800 crore debt. It plans to convert debt of Rs 7,000 crore into equity, sell spectrum, tower and fibre assets for Rs 17,000 crore, and sell real estate of Rs 100,00 crore.

The company is currently in a standstill agreement with its bank lenders until end-December 2018. Rcom defaulted on a coupon due on its $300 million secured notes on November 6, 2017.

RCom shares closed down 1.73 per cent to Rs 11.34 on a weak BSE, which ended down 0.20 per cent on Tuesday.

At its Annual General Meeting on September 26, 2017, RCom shareholders had approved the issuance of equity shares to lenders by converting loans. According to a debt resolution proposal made to RCom’s domestic and foreign lenders, the Anil Ambani-controlled company is making another attempt to pare its ₹45,000-crore debt.

Now, RCom intends to repay up to ₹17,000 crore through monetisation of assets, and another ₹10,000 crore through the sale and development of real estate space.

The company is also looking to sell some of its assets to the Mukesh Ambani-backed Reliance Jio. The company declined to provide details of these assets citing non-disclosure agreements.

Under the latest proposal, which was made on October 30 to the lenders, RCom was aiming for a Zero Loan Write-Off Plan, which means lenders don’t have to take haircuts.

Related Topics
comment COMMENT NOW