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Shares of Reliance Communications fell more than 3 per cent today, extending the downtrend due to sluggish investor sentiment after Fitch and Moody’s Investors Service further downgraded the company’s credit ratings.
The stock went down by 3.10 per cent to close at Rs 18.75 on the BSE. During the day, it declined by 3.61 per cent to Rs 18.65.
On the NSE, shares of the company slipped 3.10 per cent to end at Rs 18.75.
On the volume front, 36.59 lakh shares of the company were traded on the BSE and over 3 crore shares changed hands on the NSE during the day.
In the previous session also, the stock had fallen by 4 per cent.
Reliance Communications had yesterday rejected the credit rating cuts by Moody’s and Fitch as the agencies’ views apply only on its $300-million bonds, which are being serviced regularly.
For the second time in a span of a week, Fitch has downgraded RCom to the lowest category with some hope for recovery of principal or interest amount, while Moody’s Investors Service has downgraded the firm to the second lowest category.
Last week also, the company’s debt was downgraded by these two rating agencies — Fitch and Moody’s Investors Service. Besides, Icra and CARE has also downgraded their ratings on the company’s loan facilities.
RCom’s net debt stood at around Rs 45,000 crore as on March 31 this year. Lenders of the company have given it seven months time to repay debt. Credit rating indicates the capability of a company to pay back debt.
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