Research Update: Reliance Industries' Resilient Operations, Asset Monetization To Lower Leverage; 'BBB+' Rating Affirmed; Outlook Stable

We expect the operating performance of India-based Reliance Industries Ltd. (RIL) to remain resilient over the next two years, driven by the company's prominent domestic market position in the digital and retail segments. RIL's disciplined financial policy and sale of minority stake in the digital segment will be credit positive, assuming the proceeds will be largely used to lower net debt. On April 28, 2020, S&P Global Ratings affirmed its 'BBB+' long-term issuer credit rating on RIL and the 'BBB+' long-term issue ratings on the company's outstanding debt. The stable outlook reflects our expectation that RIL's strengthening cash flows amid disciplined spending will improve its debt-to-EBITDA ratio toward 2.0x over the next 12-24 months. We affirmed our rating on RIL

...- We expect the operating performance of India-based Reliance Industries Ltd. (RIL) to remain resilient over the next two years, driven by the company's prominent domestic market position in the digital and retail segments. - RIL's disciplined financial policy and sale of minority stake in the digital segment will be credit positive, assuming the proceeds will be largely used to lower net debt. - On April 28, 2020, S&P Global Ratings affirmed its '###+' long-term issuer credit rating on RIL and the '###+' long-term issue ratings on the company's outstanding debt. - The stable outlook reflects our expectation that RIL's strengthening cash flows amid disciplined spending will improve its debt-to-EBITDA ratio toward 2.0x over the next 12-24 months....

Research Update