Icra downgrades Bharti Airtel’s long-term rating, cites higher provisions

MUMBAI : Rating agency Icra on Monday downgraded Bharti Airtel Ltd’s long-term rating to “AA-” from “AA”, attributing the downgrade to the recognition of higher than anticipated provisions following the Supreme Court’s judgement on payment of dues for license fees on adjusted gross revenues (AGR) and spectrum usage charges in the latest quarterly results.

“Although the company has not tied up funds for the same, this liability, if materialises is expected to be funded through a bridge loan, which would result in deterioration in debt coverage metrics in near term,” the rating agency said in a release

Icra said ratings continue to remain under watch with negative implications. Ratings on Bharti Airtel’s commercial paper were reaffirmed at “A1+”.