Moody's downgrades GCX

Moody's Investors Service said it downgraded GCX Ltd.'s corporate family rating and senior secured bond ratings to Caa1 from B3.

The outlook is negative.

This concludes a review for downgrade that began in September, Moody's said.

GCX is a wholly owned subsidiary of Reliance Communications Ltd. through an intermediary holding company, Global Cloud Xchange Ltd.

The downgrade reflects the need to close a definitive refinancing plan to address GCX's $350 million senior secured bond, which is due Aug. 1, 2019, Moody's said.

Although management announced that it is evaluating several refinancing options on its recent earnings call, a binding and definitive agreement is not yet in place, the agency explained.

The company's next interest payment of $12.25 million is due Feb. 1 and the agency said it expects will be satisfied with cash on the balance sheet.

The outlook is negative, reflecting the ongoing uncertainty regarding the refinancing, Moody's said.

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