InvestorQ : Is S&P looking at a possible upgrade in ratings for Reliance Industries?
Chandralekha Desai made post

Is S&P looking at a possible upgrade in ratings for Reliance Industries?

Answer
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Mitali Bhutta answered.
1 month ago


S&P has clarified that upgrades may not be on the cards for RIL at this point of time. However, Standard & Poor has surely noted that the recent asset monetization by Reliance Industries could boost the credit quality of Reliance substantially.

It may be recollected that RIL had monetized its Jio Platform stake with a view to becoming a zero net-debt company by Mar-21. From Facebook to Google, these giants have helped RIL to monetize close to Rs.210,000 crore.

Then there was the Rs.53,200 crore rights issue, the tower monetization with Brookefield of Canada and the monetization of the retail JV by selling half the stake to British Petroleum. This does not include the $15 billion sale of the O2C business to Saudi Aramco.

The monetization as of date is more than enough to defray RIL’s net debt of Rs.170,000 crore. However, S&P does not see any upgrade from its current rating of BBB+. Possibly, there could be a re-rating after the pandemic effects have been mitigated.