Telecom reforms package credit-positive for Airtel, Jio : Moody’s

Moody’s Investor Service has said the telecom reforms package is credit positive for Bharti Airtel NSE 1.33 % and Reliance Jio as it will free up cash flows for reinvestments in existing networks, drive investments in 5G rollouts and retain the industry’ three- private players market structure.

“The reforms are credit positive for Indian telecom companies, including Bharti Airtel (Ba1 stable) and Reliance Jio, the telecom arm of Indian conglomerate, Reliance Industries (Baa2 negative), because they free up cash flow for reinvestment, enable further investment in next-generation technologies and provide support for a three private plus one state-owned telecom operational structure,” Annalisa DiChiara, Moody’s senior vice president, said in a media statement Friday.