The company posted nearly Rs 1,000 crore of consolidated loss in the fiscal fourth quarter ended March 31.
The Anil Ambani-controlled company is struggling to service debt of over Rs 44,000 crore, even as it is pushed to the side in the telecom industry where newcomer Reliance Jio Infocomm and its three larger rivals are fighting an intense battle for market share. ICRA and CARE lowered their grading of debt instruments several notches to the default status, citing similar reasons. Moody’s cut RCom’s debt ratings to Caa1 from B2, suggesting very high risk of default, and said those were on review for further downgrade because of the company’s “weak operating performance, high leverage and fragile liquidity position”. Kolkata: Moody’s Investors Service and local ratings firms ICRA and CARE downgraded Reliance Communications on Tuesday, a day when the telecom operator’s shares hit an all-time low as concerns grew over its mountain of debt.
