Bharti Airtel is down to a 2-month low at Rs.293.30 and the mood on the counter remains somber.

The stock price was hit after international agency, Moody’s downgraded its credit rating to “junk” status.

Moody’s downgraded Airtel’s rating by one notch from Baa3 to Ba1, which is non-investment grade rating, maintaining that the outlook remains negative. The stock had already been placed under review for a downgrade some time ago; after review, Moody’s acted on it.

The price war with Jio has mostly been the single biggest factor which has impacted the company’s profitability and earnings.

And this is exactly what the downgrade has used for justification, saying that the it “ reflects uncertainty as to whether or not the company’s profitability, cash flow situation and debt levels can improve sustainably and materially, given the competitive dynamics in the Indian telecom market.”