Bharti Airtel’s ratings may face downward pressure if the operator fails to continue its deleveraging strategy and competition intensify in any of the key markets.
Moody’s has assigned Baa3 long-term rating to Bharti Airtel and the outlook is stable, said Moody’s Investors Service. In its credit opinion Moody’s said
“Bharti’s Airtel Ltd’s Baa3 rating is underpinned by the strong cash flow generation of its operations in India, particularly in wireless voice and data, where it enjoys a well-established and leading market position under the Airtel brand”.
Baa3 rating also considers management’s proactive steps to reduce its exposure to the US dollar, such that the proportion of US dollar denominated debt was, by its estimates below 50 per cent at March 31. The Baa rating granted by Moody’s indicates obligations on a firm are judged to be medium-grade and subject to moderate credit risk and as such may possess certain speculative characteristics. Moody’s added.