RELIANCE COMMUNICATIONS LTD. - Credit Rating

Reliance Communications Ltd has informed BSE that Fitch Ratings (Fitch), International rating agency, has revised Companys ) Long-Term Foreign, Local Currency Issuer Default Ratings and Senior Secured Notes (Notes) ratings from 'BB-' to 'B+'. Fitch has also placed on Rating Watch Negative and assigned a Recovery Rating of 'RR4' to the Notes.<BR><BR>Fitch has stated that the demerger of the wireless business and sale of the Infratel stake, if completed, will leave Companys debt servicing dependent on cash flow from its business-to-business enterprise, optical fibre and pay-TV business.<BR><BR>Fitch estimate that the Companys pro forma (excluding GCX) net debt and EBITDA would be around USD1.5bn-1.6bn and USD240m-250m respectively in the financial year to end-March 2018 (FY18) after the wireless demerger and stake sale in Infratel.<BR><BR>Fitch has also acknowledged that the Company could raise further capital to pay down holding Company debt through the sale of its pay-TV business, dilution of some of its stake in GCX and selling surplus real estate.