Moody’s Investors Service has revised the ratings outlook of Bharti Airtel and its Netherland subsidiary, Bharti Airtel International, from ‘stable’ to ‘positive’. This improvement in rating comes on the back of improving operating performance and credit metrics.
The development has come the backdrop of the recent tariff hike announcement by the telco. Airtel recently increased its tariff rates by around 20-25 per cent, which can potentially augment the service provider’s financials in a significant way.
The telco is expected to spend around Rs 370 billion in the 5G auction. According to Moody’s, this amount will be partially funded by proceeds from additional calls for the rights issue.
Further, Moody’s expects Airtel’s consolidated adjusted EBITDA to increase to Rs 570-585 billion by the end of FY22, recording a near 25 per cent increase over the previous fiscal.
