Moody's Investors Service has withdrawn Reliance Communications Limited’s (RCom) Ca corporate family rating (CFR) and its negative outlook after the company defaulted on interest payment to bond holders.
The rating agency has also withdrawn the Ca rating on the company’s senior secured notes, said a Moody’s statement. On 6 November, RCom announced that pursuant to the invocation of Strategic Debt Restructuring (SDR) scheme by the lenders of the company as per the Reserve Bank of India guidelines agreed in June 2017, the company is under a debt standstill period until December 2018, as it looks to complete a corporate and debt restructuring. Accordingly, for the time being, no payment of interest and/or principal is being made to any RCom lenders and/or bondholders.
The semi-annual interest payment on its $300 million senior secured bond was due on 6 November 2017. According to the indenture, the company had a seven-day grace period, after which an event of default would occur.
Moody’s has withdrawn the ratings as a missed scheduled payment of either interest or principal is considered a default under Moody’s definitions, the statement added.
