News Update

Reliance Foreign Currency Upgraded By Fitch

• ByStartupStory     |    June 24, 2021

Fitch Ratings upgraded Reliance Industries Ltd.’s long-term foreign-currency issuer default rating to BBB from BBB-minus with a negative outlook. Reliance long-term local-currency issuer default rating at BBB-plus with a stable outlook by Fitch. Reliance foreign currency upgrade by Fitch has been made on the expectation that RIL’s hard-currency external debt-service ratio will remain at above 1x over the next 12 months.

Fitch’s non-financial corporates exceeding the country ceiling rating criteria states that a company with a ratio of above 1x over at least 12 months can be rated one-notch above the country ceiling. India’s country ceiling is BBB-minus. RIL’s local-currency issuer default rating reflects the company’s strong business profile with market-leading positions and diversified cash flow from a mix of oil to chemical (O2C) and consumer businesses as well as lower net leverage, said Fitch.

RIL has businesses across the energy, textile, retail, petrochemical, and telecommunications sectors. It operates the largest single-site and one of the most complex refineries at Jamnagar and has a vertically integrated portfolio across the petrochemical value chain. Its subsidiaries have leading market positions in India’s telecom and retail space.

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