Bharti Airtel shares on Friday surged asmuch as 5.5% after Standard and Poor's upgraded the telecom major's ratings.
After a positive opening, Airtel shares climbed 5.35% to Rs 301.10 on the BSE. At the National Stock Exchange, it rose 5.47% to Rs 301.45. The benchmark Sensex gained 1.6% to a new intra-day high of 21,866.51.
Standard and Poor's on Thursday upgraded Airtel to 'BBB-' on account of reduced debt and an improved regulatory environment.
The agency said that "it had raised its long-term corporate credit rating on Bharti Airtel Ltd to 'BBB-' from 'BB+'. The outlook is stable." S&P also raised the long-term issue rating on the USD 1.5 billion raised by the company through senior unsecured notes and the 1 billion euro bonds backed by the company's guaranty to 'BBB-' from 'BB+'.
A 'BBB-' rating is considered the lowest investment grade by market participants and a BB+ rating is considered the highest speculative grade, according to S&P's website.