Crisil Reaffirms RILs Rating

Mumbai, December 24: | Updated: Dec 25 2002, 05:30am hrs
Crisil has reaffirmed the outstanding rating of Reliance Industries Ltd (RIL), with the rating companys belief that, RILs second open offer for BSES, which is also rated AAA by Crisil, is not expected to impact the companys credit profile significantly.

This, despite a potential outflow of about Rs 6.3 billion, through the open offer.

RIL currently holds about 43 per cent of BSES equity capital, with an investment of around Rs 14 billion.

According to Crisil, despite the benefits of competitive capital costs and an extensive and superior infrastructure, the outlook for the Groups telecommunications business remains uncertain due to lack of clarity in the regulatory environment and the need to attract a large subscriber base.

However, despite these risks, the overall belief is that the infocom initiative offers growth potential for the Group.

The Groups large investment plans in existing and new business ventures, are expected to stretch its balance sheet over the next few years.