Homemarket Newsstocks News

Fitch affirms Bharti Airtel ratings at 'BBB-' on strong balance sheet and favourable environment

Fitch affirms Bharti Airtel ratings at 'BBB-' on strong balance sheet and favourable environment

Fitch affirms Bharti Airtel ratings at 'BBB-' on strong balance sheet and favourable environment
Read Time
2 Min(s) Read
Profile image

By CNBCTV18.com Nov 16, 2022 5:23:51 PM IST (Published)

The agency also assigned weight to capital expenditure to the 5G network as well as the rapid consolidation and growth happening in the Indian telecom market.

Fitch Ratings has affirmed telecom major Bharti Airtel Ltd.'s (Bharti) Long-Term Foreign-Currency Issuer Default Rating (IDR) and senior unsecured rating as 'BBB-'.

Recommended Articles

View All
The outlook for these has been affirmed as stable.

The Singapore-based rating agency also affirmed the company’s subsidiaries Bharti Airtel International (Netherlands) BV as 'BBB-' and Network i2i Limited's bonds as 'BB'.

The stable outlook is based on the fact that Fitch expects the company’s diversified cash flow generation to grow and fund 5G-related Capex going forward.

The rating agency also stated that the company’s ratings cannot be higher than India’s credit rating (BBB-) and any improvement in India’s sovereign ratings may result in an improvement in Bharti Airtel’s IDR ratings.

Fitch expects Bharti's net debt/EBITDA to improve to 1x by the financial year 2024 on strong cash flow generations. Bharti Airtel has raised over $11 billion over 2019-2022 to keep its balance sheet healthy.

The rating agency also added that it was expecting to see another headline tariff increase in the telecom sector in order to boost average revenue per user (ARPU) in the next 12-18 months. Bharti Airtel's ARPU during the September quarter stood at Rs 190.

Shares of Bharti Airtel closed at Rs 841.20, up 0.71 percent, on Wednesday.

Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!