S&P upgrades Airtel to 'BBB-' from 'BB+'

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S&P upgrades Airtel to 'BBB-' from 'BB+'
Standard and Poor's upgraded telecom major Airtel to 'BBB-' on account of reduced debt and an improved regulatory environment, reported PTI.

The agency said in a statement that "it had raised its long-term corporate credit rating on Bharti Airtel Ltd to 'BBB-' from 'BB+'. The outlook is stable."

Simultaneously, S&P raised the long-term issue rating on the USD 1.5 billion raised by the company through senior unsecured notes and the 1 billion euro bonds backed by the company's guaranty to 'BBB-' from 'BB+'.

A 'BBB-' rating is considered the lowest investment grade by market participants and a BB+ rating is considered the highest speculative grade, according to S&P's website.

The agency said it expects Bharti to generate free operating cash flows of USD 1.5 billion-USD 2 billion annually despite acquiring spectrum in the February auction at a price that is significantly higher than its earlier estimate.

Dion Global Solutions Ltd.

Story first published: Friday, March 7, 2014, 9:11 [IST]
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