Vodafone Idea said that Care Ratings has upgraded its rating on long term bank facilities and non-convertible debentures of the company.
The credit rating agency has upgraded the rating on the company's long term bank facilities to 'CARE B+' (outlook : stable) from 'CARE B-' (credit watch with negative implications).
It has also upgraded its rating on the telco's non-convertible debentures to 'CARE B+' (outlook: stable) from 'CARE B-' (credit watch with negative implications).
Care Ratings said that the revision in the ratings assigned to the bank facilities and instruments of Vodafone Idea (VIL) follows improvement in the industry dynamics post telecom reforms announced by the Government of India (GoI), which addressed the liquidity woes of the sector to a large extent, including that of VIL.
Followed by tariff hikes across telecommunications service providers (TSPs), raising average revenue per user (ARPU) for the industry at large, VIL's on-time repayment of large NCD obligations in H2FY22 are the credit positives.
Subsequent to the telecom reforms, CARE Ratings expects the fund-raising activities to pick up pace at VIL's level, based on articulation by the management, including partial funding support from the existing promoters in the near future.
CARE Ratings' takes note of the on-time repayment of NCD obligations, deferment of adjusted gross revenue (AGR) and related dues, and has removed the 'credit watch with negative implications' while assigning 'Stable' outlook to the ratings.
Vodafone Idea is an Aditya Birla Group and Vodafone Group partnership. It is amongst India's leading telecom service provider. The company provides pan India Voice and Data services across 2G, 3G and 4G platforms.
The company had reported a consolidated net loss of Rs 7,230.9 crore in Q3 FY22 as against a net loss of Rs 4,532.1 crore in Q3 FY21. Revenue for the quarter was Rs. 9,720 crore, a QoQ improvement of 3.3%.
The scirp zoomed 9.17% to currently trade at Rs 11.67 on the BSE.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
