Rating agency Standard & Poor's on Monday retained the credit rating of India’s largest private telecom services provider Bharti Airtel at the lowest level of investment grade with stable outlook, reflecting its strong operating and financial performance.
The stable outlook indicates that ratings are not prone to be downgraded in future, while negative makes them vulnerable to be revised downwards.
“This is based on our view that Bharti’s creditworthiness is less likely to be affected by the sovereign’s (India’s) credit factors because of the company’s relatively strong operating and financial performance,” the rating agency said in a release.
The outlook on Bharti’s ratings at stable is above S&P’s outlook on India’s sovereign ratings at negative, even as the ratings on both are placed at BBB-.
S&P further said that there is probability that Bharti would be able to service its obligations.
Last month, the rating agency downgraded India’s sovereign credit outlook to negative from stable amid the country’s declining fiscal position due to various policies to beat the economic downturn.