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Credit rating agency Fitch today said it has withdrawn ratings of debt-ridden Reliance Communications for commercial reasons. "Fitch has chosen to withdraw the ratings on Rcom for commercial reasons. Accordingly, Fitch will no longer provide ratings or analytical coverage for RCom," it said in a statement. RCom also informed stock exchanges that Fitch "has withdrawn 'C' rating of the company's Long-Term Foreign and Local Currency Issuer Default Ratings and Bonds listed in Singapore Stock Exchange due to commercial reasons". RCom said it has already informed all the stakeholders that the lenders of the company have invoked strategic debt restructuring (SDR) scheme as per RBI guidelines. "...pursuant to the said guidelines, the company is under standstill period till December 2018.
The Company has also announced various asset sales and a comprehensive debt resolution plan... Accordingly, for the time being, no payment of interest and/or principal is being made to any lenders and / or bondholders of the company," RCom said. RCom is estimated to be in debt of around Rs 45,000 crore. Various entities, including China Development Bank and publicity consultant Fortuna Public Relations have filed insolvency case against RCom. In case of Fortuna, RCom said quality of service and amount billed by the PR agency are disputed. It added that the bill of Rs 47.65 lakh raised by the PR agency is not material to the company.
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