RCom shares rise 1% after Moody's decline any impact on ratings over failed Aircel merger talks

The shares of Anil Ambani led Reliance Communications rose over 1% over credit agency Moody's statement that the company's rating would not be impacted after the failed merger talks with Aircel. 

Moody's had downgraded the credit rating of RCom to 'Ca' from 'Caa1' in June 2017.

"Reliance Communications Limited's (Rcom's) cancellation of the merger agreement of its mobile business with Aircel Limited has no impact on Rcom's Ca corporate family and senior secured bond ratings. The ratings outlook remains negative," Moody's said. 

At 09:54 hrs Reliance Communications was quoting at Rs 17.30, up Rs 0.20, or 1.17 percent, on the BSE. It touched a 52-week low of Rs 16.75.

Reliance Communications, which is reeling under a debt of about Rs 46,000 crore, on Sunday called off merger talks with Aircel, citing "legal and regulatory" delays and outlined an alternative plan for debt reduction by selling real estate as well as tower and fibre business.

RCom also blamed high level of competition as one of the reasons for termination of the merger talks.

On Tuesday, the shares Reliance Communications were reached to 52-week low after the merger talks with Aircel got off the track.

RCom and Aircel had signed binding agreements in September 2016 for the merger of mobile business.

"Legal and regulatory uncertainties, and various interventions by vested interests, have caused inordinate delays in receipt of relevant approvals for the proposed transaction," it said.