Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
22 August, 2017 10:57 IST
Moody's downgrades Reliance Communications to Caa1
Source: IRIS | 31 May, 2017, 10.37AM
Comments  |  Post Comment

Moody's Investors Service has downgraded Reliance Communications (RCOM) corporate family rating and senior secured bond rating to Caa1 from B2. At the same time, the ratings are under review for further downgrade.

"The downgrade reflects RCOM's weak operating performance, high leverage and fragile liquidity position. The company's reported EBITDA has fallen 29% year-over-year, evidencing its weak market position and contracting subscriber base," says Annalisa DiChiara, a Moody's Vice President and Senior Credit Officer.

On May 27, RCOM reported an 11% YoY decline in revenues and a 29% contraction of EBITDA to Rs 53.9 billion (USD 830 million) for full year ending March 31, 2017 from Rs 76.3 billion (USD 1.2 billion) a year ago, while its EBITDA margin dropped to 27.0% from 34.2% over the same period. RCOM's weak operating results reflect the intense state of competition, driven in turn by the free services offered by Reliance Infocomm (RJio) from mid-September 2016 through 1 April 2017.



Reliance Communications Limited   (Q,N,C,F)*

Comments Post comment 
 Post Comment
Name Email
Comment
Security Code type    into this box
Related Articles
Dr Reddy's to get up to USD 32.5 mn in milestone payments for DFD-06 - 22-Aug-2017 10:33
Eros International Media's promoter completes sale of 11.8 mn shares - 22-Aug-2017 10:22
ONGC receives nod to acquire government's 51.11% stake in HPCL - 22-Aug-2017 10:19
ONGC receives nod to acquire government's 51.11% stake in HPCL - 22-Aug-2017 10:19
HCL Infosystems to distribute Apple products in Indian market - 22-Aug-2017 10:05
Lupin receives EIR from USFDA for Aurangabad facility - 22-Aug-2017 10:02
McNally Bharat bags order worth Rs 5.14 bn - 22-Aug-2017 09:58
TCS' arm to deploy digital learning platform for ICSI - 21-Aug-2017 16:09
Jubilant receives NDA approval for Drax Exametazime - 21-Aug-2017 15:07
Tata Power launches electric vehicle charging infrastructure in Mumbai - 21-Aug-2017 13:54
Blue Star wins multiple MEP orders of over Rs 5 bn - 21-Aug-2017 12:03
more...
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer