Moody’s reviews GCX for downgrade

Moody's Investors Service said it placed GCX Ltd.'s B3 corporate family rating and senior secured ratings on review for downgrade.

GCX is a wholly owned subsidiary of Reliance Communications Ltd. through Global Cloud Xchange Ltd.

Global Cloud Xchange is under the strategic debt restructuring process agreed with the joint lenders' forum since June 2017. Reliance has been pursuing the completion of an asset monetization program since December 2017 to exit the process.

“Although management announced it is evaluating several refinancing options on its recent earnings call, a binding and definitive agreement has yet to appear, which increasingly weighs on the ratings,” Annalisa DiChiara, Moody's vice president and senior credit officer, said in a news release.

“Moreover, some of the options require RCOM's exit from the SDR process, a situation which lends to ongoing uncertainty around the completion of any agreement and GCX's ability to access the market under current circumstances.”

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