Reliance Group founder’s wealth has swelled by about $82 million to $2,700 crore, says report.
Mumbai: Reliance Communications took a massive hit this week when it revealed it has registered a whopping loss of Rs 948 crore in its fourth quarter results. On Thursday, global grading agency Fitch downgraded telecom player's ratings from B+ to CCC.
This was apart from another rating agency Moody's that also gave RCom a thumbs down with a ratings downgrade of Caa1 from B2.
A report in The Economic Times while giving the reasons for the downgrade cited Fitch report that said "poor liquidity, excessive refinancing risk and a compromised business model" had an effect on overall performance of the company.
The report says Ambani who is 57 now saw his net worth going up this year. This happened despite shares of Reliance Group's wireless unit crashed 39 per cent. The share fall inflicted on the group a loss of about Rs 3,310 crore or $513 million that reduced company's market value.
Citing a Bloomberg’s Billionaires Index, the ET report adds that despite the fall is shares and decreased market value of wireless unit, Reliance Group founder’s wealth has swelled by about $82 million to $2,700 crore.
It is also said that Reliance Group’s financial services arm Reliance Capital Ltd have done well in their quarterly appraisals. Reliance Power Ltd also did well on performance front.
"They have outstripped the erosion at a telecom unit battered by investors questioning its credit worthiness," the report explained.