Reliance Communications dropped 1% to Rs 49.70 at 12:40 IST on BSE after Moody's Investors Service, Inc., has affirmed Ba3 corporate family rating and senior secured notes rating with lowering outlook to negative from stable.
The announcement was made by the company after market hours yesterday, 7 April 2016.Meanwhile, the S&P BSE Sensex was up 9.97 points or 0.05% at 24,697.75.
On BSE, so far 10.9 lakh shares were traded in the counter as against average daily volume of 22.82 lakh shares in the past one quarter. The stock hit a high of Rs 50.40 and a low of Rs 48.75 so far during the day. The stock had hit a record low of Rs 45.65 on 25 August 2015. The stock had hit a 52-week high of Rs 91.80 on 1 January 2016. The stock had underperformed the market over the past one month till 7 April 2016, dropping 9.22% compared with 0.16% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 38.18% as against Sensex's 0.67% fall.
The large-cap company has equity capital of Rs 1244.49 crore. Face value per share is Rs 5.
Global credit rating agency, Moody's has reduced outlook to negative due to delay in execution of deleveraging plan of Reliance Communications (RCom). The change in outlook to negative from stable reflects persistent delays in the company's sale of non-core assets, which underpins its deleveraging strategy, Moody's said on its website. Furthermore, the negative outlook encapsulates expected changes in the key terms of the transaction -- including valuation which in Moody's view could be up to 20-25% lower than its earlier estimates of $3.4 billion. The negative outlook reflects its view that ongoing delays in RCom's rollout of its deleveraging plans will keep its financial and credit profile strained over the near term.
On consolidated basis, RCom's net profit fell 14.9% to Rs 171 crore on 2.4% drop in net sales to Rs 5232 crore in Q3 December 2015 over Q3 December 2014.
RCom is an integrated telecommunications service provider.
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