RCom shares dive over 4% on further downgrade in ratings

New Delhi: Shares of Reliance Communications on Wednesday fell over 4 percent after Fitch and Moody's Investors Service further downgraded the company's credit ratings, citing a fragile liquidity position and limited ability to repay debt.

The stock after making a weak opening tumbled further by 4.22 percent to Rs 19.25 on BSE.

On NSE, shares of the company lost 4.46 percent to Rs 19.25.

For the second time in a span of a week, Fitch downgraded RCom to the lowest category with some hope for recovery of principal or interest amount while Moody's Investors Service downgraded the firm to the second lowest category.

Last week also, the company's debt was downgraded by these two rating agencies -- Fitch and Moody's Investors Service. Besides, ICRA and CARE had also downgraded their ratings on the company's loan facilities.

RCom's net debt stood at around Rs 45,000 crore as on March 31 this year. The lenders of the company have given it seven months time to repay debt.

Credit rating indicates capability of a company to pay back debt.