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Moody’S revises Bharti Airtel’s rating outlook from stable to positive

Moody’s Investors Service on Tuesday revised the rating outlook for Bharti Airtel Ltd and its subsidiary Bharti Airtel Int’l (Netherlands) BV from stable to positive.

“The change in outlook to positive reflects improved operating performance and Bharti’s credit metrics which, if sustained, could support an investment grade upgrade over the next 12-18 months,” said Annalisa Di Chiara, senior vice president of Moody’s.

In addition, Moody’s has confirmed the Ba1 corporate family (CFR) rating and senior unsecured rating of Bharti, as well as the Ba1 rating of the senior unsecured backed bonds issued by Bharti Airtel Int’l (Netherlands) BV.

“Continued expansion of profitability, particularly in its core mobile phone business in India, as well as a steady reduction in debt on its balance sheet, are necessary to mitigate the potential effect on Bharti’s credit measures of significant investments in 5G and the cumulative growth of deferred liabilities during the moratorium period, ”added Di Chiara, who is also Moody’s senior analyst for Bharti.

Yesterday, Bharti Airtel announced tariff increases of 20-25% for various prepaid offers, including tariffed voice plans, unlimited voice plans and data top-ups, and said the new tariffs would take effect from November 26. .

The entry-level priced voice plan has been increased by around 25%, while for unlimited voice plans the increase in most cases is around 20%. Sunil Mittal, the leader of the telecommunications company, whose mobile customer base in India was around 323 million at last count, has also raised the rates for data recharge plans by around 20 to 21 percent.

In a statement announcing the revised mobile tariffs, Airtel said it has consistently maintained that the average mobile revenue per user (ARPU) should be Rs 200 and ultimately Rs 300 to provide a reasonable return on capital for a financially healthy business. model.

“We also believe that this level of ARPU will allow for the required substantial investments in networks and spectrum. More importantly, it will give Airtel the leeway to deploy 5G in India,” said a statement from Airtel.

(Edited by : Jomy Jos Pullokaran)


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