Business & FinanceTop StoryTop StoryLatest News
S&P Affirms RIL's 'A-' Credit Rating, Citing Jio Listing and Stronger Earnings
Sentiment: NeutralHigh Priority
What Happened?
S&P Global Ratings has affirmed Reliance Industries Ltd's 'A-' credit rating, highlighting resilient earnings and strong cash flow following the Jio Platforms listing. The outlook remains stable.
Key points
- S&P expects RIL's consolidated EBITDA to grow 19-23% to ₹2.15 trillion-₹2.25 trillion for FY27.
- The oil-to-chemicals business is projected to increase EBITDA by 30-35% in FY27.
- Digital services EBITDA is forecasted to grow 12-14%, driven by subscriber growth and higher ARPU.
- RIL aims to maintain a net debt-to-EBITDA ratio below 1.0 times.
- The listing of Jio Platforms raised about ₹30,000 crore, improving RIL's funding flexibility.
Key insights
- RIL's diversified funding sources could enhance its financial stability amid rising investment needs.
- S&P's stable outlook suggests confidence in RIL's ability to sustain growth despite market challenges.
- Future upgrades in RIL's rating may depend on improved financial metrics and contributions from new energy ventures.
Market Impact
business and finance
PositiveThe affirmation of RIL's credit rating is expected to positively influence investor confidence and funding opportunities.
Why it matters
The affirmation indicates RIL's strong market position and ability to manage investments effectively.
Tags
Entities
Reliance Industries Ltd· CompanyJio Platforms Ltd· CompanyS&P Global Ratings· OrganizationIndia· Country
Source
Business Standard
