Reliance Industries has announced that Moody's Investors Service on 03 December 2007 affirmed the Baa2 issuer and senior unsecured rating of Reliance Industries (RIL) with stable outlook.RIL's operating cash flow generating capacity will be materially enhanced over the next 12-24 months, after the planned commissioning of the new Jamnagar greenfield refinery and the domestic gas project. At the same time, RIL has plans to undertake substantial investments in refining, petrochemicals, and E&P;, as well as the retail sector. RIL is well positioned in the Baa2 rating, which assumes that the company's investments will be made in a manner that would not materially weaken its financial profile.
The rating could be upgraded if RIL demonstrates a continued track record in maintaining its current strong financial profile as it executes its expansion plan so that its scale and diversity strengthens. Credit measures that Moody's would look for include maintaining RCF / debt ratio above 25%-30% and EBIT / Interest above 8.0x on a consistent basis.
The company made this announcement during the trading hours today, 03 December 2007.
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