Shares of Telecom operator Bharti Airtel slipped 5.2 p.c within the early commerce on Friday after Moody’s Investors Service positioned firm’s rating on review for downgrade, following low ranges of profitability and expectation of weak money circulate.
Moody’s has positioned on review for downgrade the ‘Baa3’ issuer and senior unsecured rating of Bharti Airtel and the scores on the backed senior unsecured notes issued by Bharti’s wholly-owned subsidiary, Bharti Airtel International (Netherlands) B V, the US-based company mentioned in a press release.
‘Baa3’ is the bottom investment-grade bond scores, and any downgrade would put the rating in speculative grade.
“The review for downgrade is primarily driven by our expectation that Bharti’s cash flow generation will remain weak and leverage elevated,” Moody’s VP and Senior Credit Officer Annalisa DiChiara mentioned.
The review additionally displays the corporate’s low ranges of profitability, notably from its core Indian cell operations, damaging free money circulate and better debt ranges to fund capital spending, it mentioned.
At 09:17 hrs Bharti Airtel was quoting at Rs 294.80, down Rs 11.15, or 3.64 p.c on the BSE.
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With inputs from PTI