Summary: Reliance Industries Ltd. Oct 11

Standard & Poors, October 2011

Abstract
The rating on India-based Reliance Industries Ltd. (RIL) reflects the company's strong competitive position and good business diversity. In addition, the company has stable cash flows and low leverage with strong liquidity. The following weaknesses offset these strengths: RIL's vulnerability to the cyclical nature of its industries and commodity prices; its exposure to India's country and regulatory risks, especially for gas-producing blocks in the Krishna Godavari basin (KG D6); declining gas production from KG D6; and RIL's aggressive growth strategy. We attribute RIL's competitive strength to the company's large size and integrated and efficient oil refining and petrochemicals operations. These operations contribute about 75% to RIL's operating income. The exploration and production (E&P) business contributes most of the rest. Such...

Companies mentioned in this report are: Reliance Industries Ltd.
Action: Review

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Reliance Industries Ltd.

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