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Bharti Airtel share price in focus as Crisil upgrades rating on firm's debt

The credit ratings firm expects further improvement in the overall credit risk profile of the company over the near to medium term

September 29, 2021 / 11:17 AM IST
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Bharti Airtel share price is in focus a day after Crisil upgraded the rating on the company's debt programme.

Crisil Ratings on September 28 said it has upgraded the long-term rating on the bank facilities and debt programme of Bharti Airtel to AA+ with a stable outlook. Earlier, the rating was AA with a stable outlook.

The credit ratings agency reaffirmed the A1+ rating on the commercial paper programme of Bharti Airtel and withdrawn its rating on Rs 1,500 crore non-convertible debentures (NCDs) of the company, as they have been fully repaid.

"The rating action reflects continued improvement in BAL's (Bharti Airtel) operating metrics resulting in a healthy financial risk profile," Crisil said in its report.

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The credit ratings firm expects further improvement in the overall credit risk profile of the company over the near to medium term on the back of improving cash accruals, deleveraging plans, including rights issue, notwithstanding adjusted gross revenue (AGR) dues and additional expenditure for acquiring spectrum at the auction held in March 2021.

The telecom major's Rs 21,000 crore rights issue would open on October 5, the company said in a regulatory filing on September 22 with the closing date of the issue as October 21, 2021.

The issue size has been fixed as "up to 392,287,662 Rights Equity shares", Bharti Airtel said, and reiterated the rights issue price of Rs 535 per fully paid-up equity share, including face value of Rs 5 and premium of Rs 530 per equity share.

Global research firm CLSA retained buy rating on the stock and raised the target to Rs 825 per share, an upside of . "The telecom firm had an 18x jump in data usage. ARPU is up 46% from lows and we expect it to rise to Rs 199," the brokerage firm said, according to a CNBC-TV18 report.

The telecom major may see an EBITDA growth of 24% by FY24. Jio’s rising inactive subs and reduced tariff discounts lowers the risk of disruption, it added.

The stock was trading at Rs 693.95, down Rs 2.30, or 0.33 percent. It has touched an intraday high of Rs 702.00 and an intraday low of Rs 690.90.
Moneycontrol News
first published: Sep 29, 2021 11:17 am

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