Live Webinar on "How to Invest successfully to reach goals without losing sleep" Sign up for Live Webinar

Bharti Airtel is rated above India’s sovereign rating by Standard & Poor’s

24 Mar 2009

Standard & Poor’s Rating services has affirmed its BBB- long term corporate credit rating on Bharti Airtel and said that the outlook is stable.  Infact, the rating is higher than India’s sovereign rating of BBB-/Negative/A-3 but lower than the Transfer and Convertibility Assessment of BBB+. The rating agency said that Bharti’s creditworthiness is less likely to be affected by India’s sovereign credit factors because of its relatively strong operating and financial performance.

S & P said that India's telecommunications market is fairly liberalized, but uncertainty on issues such as allocation of additional spectrum and pricing of 3G licenses presents a moderate credit risk for most operators, including Bharti. On the positive side, it said that the market continues to grow rapidly, largely due to low penetration of about 30%. This has helped fast revenue growth for Bharti of more than 40% but S & P expects that to moderate in future. But Bharti's EBITDA margin continued to top 40% and is not expected to materially deteriorate, even if the economic environment affects its growth.

S & P said that Bharti's expected capital expenditure is US$3.0 billion - US$3.5 billion in fiscal 2010, but this is expected to be mostly funded through internal cash flows and could result in marginally negative free operating cash flows on a consolidated basis in the near term.crackcrack

Related Bharti Airtel Ltd. Links:

Bharti Airtel Share Price

542.60 3.40 (0.63%) Jun 15, 18:01
1 Year Price Chart
Peers
Company Name CMP
Bharti Airtel 542.60
Vodafone Idea 9.71
Indus Towers 253.90
Tata Communications 1325.65
MTNL 21.05
View more..
Sensex vs Bharti Airtel
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

Callback