Bulletin: Reliance Industries' Deleveraging Set To Continue

SINGAPORE (S&P Global Ratings) May 5, 2021--S&P Global Ratings today said that Reliance Industries Ltd.'s (RIL; BBB+/Stable/--) deleveraging of its balance sheet is likely to continue. The company's prudent investment policies, stable operations, and potential for further asset monetization should support the trend. RIL's deleveraging over the past 12 months has exceeded our expectations. This was driven by sizable asset monetization and equity raising. The India-based conglomerate recognized a cash inflow of Indian rupee (INR) 2.2 trillion (about US$30 billion) during fiscal 2021 (year ended March 31, 2021), which lowered our computation of reported net debt by about 70% to about INR540 billion. The reduction in debt was despite RIL having negative free cash flows of about INR860 billion during

...May 4, 2021 SINGAPORE (S&P Global Ratings) May 5, 2021--S&P Global Ratings today said that Reliance Industries Ltd.'s (RIL; ###+/Stable/--) deleveraging of its balance sheet is likely to continue. The company's prudent investment policies, stable operations, and potential for further asset monetization should support the trend. RIL's deleveraging over the past 12 months has exceeded our expectations. This was driven by sizable asset monetization and equity raising. The India-based conglomerate recognized a cash inflow of Indian rupee (INR) 2.2 trillion (about US$30 billion) during fiscal 2021 (year ended March 31, 2021), which lowered our computation of reported net debt by about 70% to about INR540 billion. The reduction in debt was despite RIL having negative free cash flows of about INR860 billion during the year. We therefore estimate the S&P adjusted debt-to-EBITDA ratio on the company improved to about 1x in fiscal 2021 from 3.1x in fiscal 2020. We cannot rule out further asset monetization...

Bulletin