Reliance Communications' shares dip over 2% as Fitch withdraws company ratings

New Delhi: Shares of Reliance Communications on Wednesday fell more than two percent in morning trade on bourses after credit rating agency Fitch said it has withdrawn ratings of debt-ridden Reliance Communications for commercial reasons. Reliance Communications stock on Wednesday opened at Rs 11.10 and slumped 2.38 percent to touch an intra-day low of Rs 11.07 on the BSE. [caption id=“attachment_816745” align=“alignleft” width=“380”]  Reliance Communications. Reuters.[/caption] Similar movement was seen on the NSE as well, where the stock opened at Rs 11.35, then fell 2.64 percent to touch an intra-day low of Rs 11.05. “Fitch has chosen to withdraw the ratings on Rcom for commercial reasons. Accordingly, Fitch will no longer provide ratings or analytical coverage for RCom,” it said in a statement on Tuesday. RCom also informed stock exchanges that Fitch “has withdrawn ‘C’ rating of the company’s Long-Term Foreign and Local Currency Issuer Default Ratings and Bonds listed in Singapore Stock Exchange due to commercial reasons”. RCom said it has already informed all the stakeholders that the lenders of the company have invoked strategic debt restructuring (SDR) scheme as per RBI guidelines. RCom is estimated to be in debt of around Rs 45,000 crore. Various entities, including China Development Bank and publicity consultant Fortuna Public Relations have filed insolvency case against RCom.