Shares of Reliance Communications (RCom) were fell 0.5% on Thursday morning as Moody's said that rating of the company will continue to be under review for a downgrade. 

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The company on Wednesday announced sale of its tower business to Brookfield Infrastructure for Rs 11,000 crore. It said that it will use this entire proceed to lower its debt. 

At 10.09 am, shares of RCom were at Rs 37.25 per share, down by 0.53%. 

Moody's said, “While the signing of agreement is credit positive, the ratings remain under review for downgrade, because of Rcom's announced transactions – de-merger of its wireless business and sale of its telecom tower assets, which is expected to result in structural re-organization across the group and recalibration of the credit risk for bond holders."

On December 21, RCom announced the agreement where its wholly owned subsidiary Reliance Infratel will transfer the entire tower business, which will be 100% managed and controlled by Brookfield.

Moody feels there is still lack of  clarity on the cash flow generating capabilities of some of Rcom's remaining businesses, as the resulting leverage or cash flow positions following its restructuring can only be estimated within wide bounds. 

Recently, another ratings agency Fitch Ratings revised RCom's long term foreign, local currency issuer default ratings and senior secured notes ratings from 'BB-' to 'B+'. 

However, it has also placed on rating watch negative and assigned a recovery rating of ' RR4' to Notes.