The outlook change comes after a persistent delay in the company's planned non-core asset sales, which underpin its deleveraging strategy. Moody's expects the valuation of the tower transaction could be 20-25 per cent lower than its earlier estimates of $3.4 billion.
Analysts at Moody's further state that RCom continues to have a weak liquidity profile, and remains reliant on recurring covenant waivers from banks due to its high leverage. The telecom company has $450 million (Rs 2,600 crore) of debt maturing in the current quarter ending June 2016. This includes a $350 million ECB facility at Reliance Infratel Limited, which is guaranteed by RCom and has a cross-default with other debt.
You’ve hit your limit of 5 free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories Online
Over 30 behind the paywall stories daily, handpicked by our editors for subscribers


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app