Fitch affirms Reliances Industries’ credit ratings

02 April 2009 09:00  [Source: ICIS news]

SINGAPORE (ICIS news)--Fitch Ratings has affirmed its corporate debt ratings for Reliance Industries Ltd, citing the conglomerate’s efficient refining operations and its dominant position in India’s petrochemical industry, the credit ratings agency said on Thursday.

Fitch has a long-term foreign and local currency issuer default ratings (IDR) of “BBB-” for RIL and an “AAA(ind)” national long-term rating for the company, with stable outlooks.

Fitch has also affirmed the “AAA(ind)” rating of RIL's Indian Rupees (Rs)130bn ($2.57bn) non-convertible debenture programme.

The ratings agency said it took into account the Indian firm’s scale of operations in key product lines and its record of moderate financial leverage, which was supported by robust cash generation from core businesses, in affirming RIL’s healthy credit standing.

“Given the commoditised nature of its business, RIL is exposed to cyclicality; however it has maintained moderate financial leverage in the last five years (from 2004),” Fitch said.

As of end-January 2009, RIL had a consolidated cash equivalent to Rs320bn with significant unutilized working capital banking lines and treasury stock holdings and moderate debt maturities in the year to March 2010, the ratings firm said.

($1 = Rs50.62)

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By: Pearl Bantillo
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