Infusion of Rs25,000 crore not enough to stabilise Bharti Airtel rating

NEW DELHI: S&P Global Ratings on Wednesday said Bharti Airtel’s proposed rights issue of up to ₹25,000 crore is not enough to stabilise its credit rating.

The rating agency said that there is negative outlook, an indication of rating downgrade, which looks at renewed competition and higher capital spending by the company that will keep its debt level up.

“S&P Global Ratings believes the proposed rights issue (of ₹25,000 crore), if successful, would go a long way in restoring Bharti’s balance sheet and shoring up leverage. However, the negative outlook on the rating captures the risk of renewed competition and elevated capital spending by Bharti, which may keep the leverage elevated,” the rating agency said.