Moody's turns Bharti view to positive

Moody's Investors Service said it revised Bharti Airtel Ltd.'s and its subsidiary Bharti Airtel International (Netherlands) BV's outlook to positive from stable.

Concurrently, the agency affirmed Bharti's Ba1 corporate family and senior unsecured ratings, as well as the Ba1 rating on the backed senior unsecured notes issued by Bharti Airtel International.

"The outlook change to positive reflects Bharti's improving operating performance and credit metrics which, if sustained, could support an upgrade to investment grade within the next 12-18 months," said Annalisa Di Chiara, a Moody's senior vice president, in a press release.

"The continued expansion of profitability, particularly at its core Indian mobile business, together with a steady reduction in its balance sheet debt, is needed to mitigate the potential effect on Bharti's credit metrics of significant investments in 5G and the compounding growth of deferred liabilities during the moratorium period," added Di Chiara, who is also Moody's lead analyst for Bharti.

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