Reliance Communications gains as ICRA upgrades credit rating

The stock was trading higher by 3% at Rs 48.95 on the BSE, in otherwise subdued market.

Reliance Communications (RCom) was trading higher by 3% at Rs 48.95 on the BSE in an otherwise subdued market after the rating agency ICRA on Wednesday upgraded its outlook to stable from negative on the long term rating 'BBB+' of the company. 
 

It has also reaffirmed rating of A2+ for short-term fund based/non fund based limits and commercial papers of the company, RCom said in a statement.

“The reaffirmation in ratings and revision in outlook reflects the improving business profile of the Group with several initiatives being taken by the group to increase its spectrum holding, provide additional focus on data services including the foray into 4G services. These include the deal to acquire wireless operations of Sistema Shyam Teleservices Limited (SSTL), spectrum sharing and trading deal with Reliance Jio Infocomm Limited (RJIL) and proposed merger of wireless business with Aircel Limited,” ICRA said in a release. CLICK HERE TO READ FULL REPORT.

The stock hit an intra-day high of Rs 49.25 on the BSE so far. Till 10:38 AM, a combined 13.28 million shares changed hands on the counter on the BSE and NSE. The S&P BSE Sensex was down marginally by 0.01% at 26,769 points.

The stock is currently trading close to its 52-week low of Rs 45.65 on the BSE, touched on August 28, 2015 during the intra-day trade. Thus far in 2016, it underperformed the market by falling 46% against 2.5% rise in the benchmark index till Wednesday.