Halister News

--BEN SCENT

--JAMES HERRON

(Bloomberg) -- Fitch cut the ratings on Reliance Communications unit Global Cloud Xchange on concern the undersea cable company is facing liquidity and refinancing risks, according to a statement Thursday.

• Fitch cut Global Cloud Xchange to B- with a negative outlook
• It also lowered unit GCX Ltd.’s $350m 7% 2019 senior unsecured notes by 3 steps to B+, with an indicated recovery level of 71-90% in a default scenario
• Fitch cites risks of persistently negative free cash flow, deteriorating liquidity, and therefore higher refinancing risk of the bond due in August 2019: statement
• Downgrades reflect expectations that liquidity may weaken in FY18
  • Group cash balance may fall below $40m due to “lower indefeasible right of usage sales, weakness at its managed service segment and working capital outflows”
  • Fitch estimates measure of adjusted net leverage to deteriorate to more than 5x in FY18 vs 4.2x in FY17
• GCX’s 7% notes due 2019 were little changed at about 91.9 cents on the dollar at 3.15pm in Hong Kong, according to Bloomberg-compiled prices
• Related stories
  • RCOM’s 2020 USD bond may allow for GCX sale: Covenant Review

To contact the reporters on this story: David Yong in Singapore at dyong@bloomberg.net; Anurag Joshi in Mumbai at ajoshi53@bloomberg.net To contact the editors responsible for this story: Neha D'silva at ndsilva1@bloomberg.net David Yong, Finbarr Flynn

Economic Release Details: {MAOPRATE Index ECOD} --POOI KOON CHONG

--ADELA LIN

(Bloomberg) -- Here’s a roundup of Indian co. debt-rating changes.

• To get this story sent to your inbox real-time, run NI INRATINGS, click on Display & Edit, then Set Alert Delivery

DOWNGRADES

• Azam Rubber
  • Long-term bank facilities lowered to D from B+ at Care
  • Cites irregularities in debt servicing
• Capital Electech
  • LT bank facilities cut to BB from BB+ at Crisil
  • Cites weakening working capital cycle
• IFCI
  • LT bank facilities cut to A- from A at Care; subordinated bonds downgraded to BBB+ from A- and NCDs reduced to A+(SO) from AA-(SO)
  • Cites sharp deterioration in asset quality parameters as on March 31 and decline in profitability
• Maa Bhagwati Coke
  • Fund-based facility cut to D from B+ at Brickwork
  • Cites persisting liquidity issues, irregularity in bank accounts
• Religare Finvest
  • NCDs cut to A from AA- at Care
  • Cites corporate governance/disclosure issues
• Shalimar Paints
  • LT bank facilities cut to B from BBB at Care
  • Cites deterioration in financial performance, debt coverage indicators
• Steel Exchange
  • LT bank facilities cut to D from BB at Care
  • Cites decline in profitability due to subdued steel industry scenario

UPGRADES

• Diamines
  • LT bank facilities raised to BB+ from BB- at Crisil
  • Cites improvement in debt protection metrics and liquidity
• Ess Kay Fincorp
  • LT bank facilities, NCDs raised to BBB+ from BBB at Care
  • Cites improvement in loan portfolio, diversification of business profile
• GMR Hyderabad International Airport
  • LT bank facilities raised to AA from AA- at Care
  • Cites robust financial performance last financial year with strong profitability parameters
• Pasupati Acrylon
  • LT bank facilities raised to BBB from BBB- at Crisil
  • Cites ramp-up of new cast polypropylene films plant and increasing focus on exports
• Saraf Agencies
  • Term loan raised to BBB- from BB at India Ratings
  • Operations likely to ramp up this financial year
• RPP Infra
  • Fund-based facility raised to BBB from BBB- at Brickwork
  • Cites improvement in scale of operations