Fitch lowers Reliance

Fitch Ratings said it downgraded Reliance Communications Ltd.'s long-term foreign- and local-currency issuer default ratings to CCC from B+.

Fitch also said it downgraded the rating on Reliance's $300 million 6½% senior secured notes due 2020 to CCC with recovery rating of RR4 from B+ with recovery rating of RR4.

The Rating Watch negative has been removed.

The downgrades reflect a belief that some kind of default is a real possibility, Fitch said.

The agency said it believes that Reliance may struggle to refinance its maturing short-term debt given declining EBITDA and delays in executing asset sales.

Reliance's capital structure is unsustainable as the 2017 adjusted net leverage was more than 9x and S&P said it does not expect operating cash flows will improve.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.