Airtel’s proposed rights issue ‘credit positive’: Moody’s

NEW DELHI: Telecom operator Bharti Airtel’s proposed rights issue is “credit positive” as it will enable the company to pare debt and improve liquidity, according to Moody’s.

Airtel’s Board had last week approved fund-raising plans of up to ₹32,000 crore through a combination of rights issue and bond — a move that will help the company take on market competition intensified by Reliance Jio, and cut debt.

“The proposed rights issue, if completed, is credit positive for Bharti because it will allow the company to reduce debt and improve its liquidity,” Moody’s Investors Service said in a statement.