S&P affirms stable rating on Reliance Industries

Mumbai, Dec 29 | Updated: Dec 30 2006, 05:30am hrs
Rating agency Standard & Poors Ratings Services on Friday affirmed its stable (BBB) rating on long term foreign and local currency ratings of Reliance Industries Ltd (RIL) at BBB. The affirmation reflects Reliances dominant competitive position, the relatively stable medium term prospects for its core refining and petrochemical businesses, and an overall moderate financial profile of the company, S&P credit analyst Anshukant Taneja said.

The ratings factor in the likelihood of timely completion of its ongoing projects, specifically the new refinery at Jamnagar, S&P said in a release.

It added that the ratings are also underpinned by the expectation that RIL would pursue its non-core businesses, specifically investments in the retail sector, in a modular phased-out manner, as an accelerated investment strategy can weigh on the companys overall credit profile.