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Bulletin: Reliance Industries Ltd. Rating Unaffected By Planned Share BuyBack, Weak Operating Performance Jan 12
Standard & Poors, Jan 2012
Abstract
MUMBAI (Standard & Poor's) Jan. 23, 2012--Standard & Poor's Ratings Services said today that its long-term corporate credit rating on Reliance Industries Ltd. (RIL; BBB/Positive/--) is unaffected by the company's plan to buy back equity shares. A 25% drop in RIL's EBITDA in the quarter ended Dec. 31, 2011, compared with the previous quarter will also not affect the rating, in our view. We believe RIL's liquidity will remain strong despite the buyback, considering the company's significant cash and cash equivalent of Indian rupee (INR) 745 billion as of Dec. 31, 2011. The buyback plan could result in a maximum cash outflow of INR104 billion. Our rating on RIL already factors in a likely volatility in operating performance due to...
Companies mentioned in this report are: Reliance Industries Ltd.
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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