We expect Reliance Industries' operating performance to significantly improve over the next two years as the company commissions projects and launches telecom operations. Better operating performance will offset high capital expenditure, resulting in its debt-to-EBITDA ratio improving to about 2x in fiscal 2018 after peaking in fiscal 2016. We are therefore affirming our 'BBB+' long-term corporate credit rating on Reliance Industries and our 'BBB+' long-term issue rating on the company's senior notes and guaranteed notes. The stable outlook reflects our expectation that Reliance Industries' leverage will significantly improve over the next two years with the debt-to-EBITDA ratio close to 2x. On May 31, 2016, S&P Global Ratings affirmed its 'BBB+' long-term corporate rating on India-based energy and consumer business conglomerate
