Rating agency Crisil today placed its rating on Sistema Shyam Teleservices Ltd’s (SSTL’s) on ‘Rating Watch with Negative Implications’. The move followed the Supreme Court order to cancel 122 licences granted by former telecom minister A Raja.
| CRISIL ratings | |
| Company Name | Rating |
| Bharti Airtel | CRISIL AAA/Negative/CRISIL A1+ (Reaffirmed) |
| Idea Cellular | CRISIL A1+ (Reaffirmed) |
| Sistema Shyam Teleservices | CRISIL B+/ Placed on ‘Rating Watch with Negative Implications’ |
| Tata Teleservices | CRISIL A/Stable/CRISIL A1 (Reaffirmed) |
| Tata Teleservices (Maha) | CRISIL A/Stable/CRISIL A1 (Reaffirmed) |
| Vodafone India | CRISIL AA/Stable/CRISIL A1+ (Reaffirmed) |
| Vodafone Cellular | CRISIL AA/Stable/CRISIL A1+ (Reaffirmed) |
| Vodafone Digilink | CRISIL A1+ (Reaffirmed) |
| Vodafone East | CRISIL A1+ (Reaffirmed) |
| Vodafone West | CRISIL A1+ (Reaffirmed) |
| Vodafone Mobile Services | CRISIL AA/Stable/CRISIL A1+ (Reaffirmed) |
| Vodafone South | CRISIL AA/Stable/CRISIL A1+ (Reaffirmed) |
| Vodafone Spacetel | CRISIL A1+ (Reaffirmed) |
Crisil said the rating action on SSTL is based on Crisil’s belief that the verdict can potentially impact more than 80% of SSTL’s revenues.
Crisil said it is in discussions with SSTL’s management, and will remove the ratings from watch and take appropriate rating action "once it gains clarity on SSTL’s future course of action, with regard to fresh applications for licences, and related funding plans."
The agency however, reaffirmed its ratings on Bharti Airtel Ltd (Bharti), Vodafone India Ltd and its group companies (the Vodafone group), Idea Cellular Ltd (Idea), Tata Teleservices Ltd (Tata Tele), and Tata Teleservices (Maharashtra) Ltd (TTML).
"The impact on SSTL is severe as its licences have been cancelled in 21 circles, while for Tata Tele and Idea, the impact is limited, as their licences have been cancelled in only three and nine circles, respectively. For Bharti, the Vodafone group, and TTML, the licences remain unaffected," Crisil said in a release.
The ratings on Tata Tele and Idea have been reaffirmed because revenues from the affected circles constitute less than 5% of their revenues from mobile services. Crisil has reaffirmed its ratings on Bharti, TTML, and the Vodafone group because the SC verdict is unlikely to impact their operations.