S&P reaffirms RIL rating

S&P reaffirms RIL rating
ENS ECONOMIC BUREAU

MUMBAI, JANUARY 19: Global rating firm Standard & Poor's (S&P) has reaffirmed Reliance Industries Ltd's (RIL) foreign currency bonds rating to `BB' indicating stable outlook in terms of repayment of interest and principal.

The rating firm has reaffirmed `BB' to RIL's 10.5 per cent $ 100 million unsecured notes having a maturity of 100 years (maturing in 2097), $ 214 million 8.25 per cent unsecured notes maturing in 2027, $ 150 million 8.125 per cent debt maturing in 2005. Rating has been retained for the $ 100 million 9.375 per cent unsecured debt (repayment in 2026), $ 100 million 10.5 per cent due for maturity in 2046 and 100 million 10.375 per cent unsecured notes due for repayment in 2016.

S&P has also retained `BB' rating for the pertrochemical giant's 150 pounds 8.75 per cent notes and for its secured debt. The firm in its report said "rating of RIL reflects the sovereign credit risk of India's foreign currency obligations".

It also said the rating takes into account the company'shighly-integrated production of polyester fiber, textiles and plastic polymers. S&P said Reliance's financial policies are moderate. "The company's current conservative policy is to maintain a net debt-to-capital ratio of 30-35 per cent," it said.