Moody’s Investors Service has downgraded corporate family rating and senior secured bond rating of Reliance Communications (RCom). The downgrade reflects the company’s weak operating performance, high leverage and fragile liquidity position.
RCom had reported loss of Rs 948 crore in March quarter, compared to a net profit of Rs 79 crore in year-ago period, hurt by the intense price war unleashed by newcomer RJio. The rating of RCom, promoted by billionaire Anil Ambani, has been reduced to Caa1 (reflects poor quality and very high credit risk) from B2 (speculative and high credit risk).
