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GCX is a subsidiary of Anil Ambani-driven Reliance Communications<\/a> (RCom).
The New York-based agency has also affirmed the company's $350 million senior secured notes due 2019, issued by CGX, at 'B-' with a recovery rating of 'RR2'.
“It reflects high refinancing risk on the secured notes due to continued weak liquidity and persistently negative free cash flow (FCF) as well as the default and break-up of GCX's parent, Reliance Communications (RCom),” it said in a statement.
The firm also said that recent developments has also dented the group's reputation.
In January this year, GCX's issuer default rating has been downgraded to 'CCC' from the earlier 'B-', while the rating of $350- million secured notes due 2019 was downgraded to 'B-' from 'B+'.
GCX may face challenges to refinance the notes which have a current yield to maturity of around 16% to 17% in a timely manner, Fitch added.
The agency is also expected to review the ratings by the end of September 2018.
It attributed a slew of risk factors behind the continued negative rating.
GCX's liquidity is likely to remain weak and the US-based firm forecasts negative FCF of around $10-15 million for the financial year ending March 2019, as cash flow from operations may fall short of its capex estimate of around $30 million.
RCom’s subsidiary continues to face excessive refinancing risk on its $350 million secured notes due in August 2019 on persistently negative FCF and a lack of resolution of receivables of $130 million due from RCom.
The agency believes that GCX's working capital outflow will fall to around $10-15 million in FY19 on lower net sales exposure to RCom of $7 million, following the discontinuation of its services to RCom's former wireless business.
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GCX Anil Ambani-driven的子公司信实电信(RCom)。
纽约的机构也肯定了公司2019年到期的3.5亿美元高级担保债券发行的CGX,与复苏的B - RR2的评级。
“这反映了高再融资风险担保票据由于流动性持续疲软及持续负自由现金流量对营收比率以及默认分手GCX的家长,Reliance Communications (RCom),”在一份声明中说。
该公司还说,最近的事态发展也影响了集团的声誉。
今年1月,GCX的发行人违约评级被下调的“CCC”“B -”早些时候,尽管评级——350美元的担保票据由于2019年降级为“B -”“B +”。
GCX可能面临挑战进行再融资的笔记当前到期收益率约16%到17%的及时,惠誉补充道。
该机构还预计,年底评估评级2018年9月。
它认为一系列风险因素的持续负面评级。
GCX的流动性可能会继续疲软和美国公司预测负自由现金流量约为10 - 15美元百万截至2019年3月的财政年度,从运营现金流可能达不到其资本支出的估计约为3000万美元。
信实电信的子公司仍面临过度融资风险在其3.5亿美元担保债券将在2019年8月在持续负自由现金流量和缺乏解决应收账款信实电信的1.3亿美元。
该机构认为GCX的营运资本外流将降至约10 - 15美元百万在FY19低接触RCom净销售额为700万美元,停药后RCom前无线业务的服务。
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