Shares of Reliance Communications today ended 4 per cent lower after Fitch and Moody's Investors Service further downgraded the company's credit ratings, citing a fragile liquidity position and limited ability to repay debt.
The stock went down by 3.73 per cent to settle at Rs 19.35 on BSE. During the day, it declined 4.72 per cent to Rs 19.15.
On NSE, shares of the company slipped 3.97 per cent to end at Rs 19.35.
On the volume front, 54.48 lakh shares of the company were traded on BSE and over 4 crore shares changed hands on NSE during the day.
For the second time in a span of a week, Fitch downgraded RCom to the lowest category with some hope for recovery of principal or interest amount while Moody's Investors Service downgraded the firm to the second lowest category.
Last week also, the company's debt was downgraded by these two rating agencies -- Fitch and Moody's Investors Service. Besides, Icra and CARE had also downgraded their ratings on the company's loan facilities.
RCom's net debt stood at around Rs 45,000 crore as on March 31 this year. The lenders of the company have given it seven months time to repay debt.
Credit rating indicates capability of a company to pay back debt.
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