S&P upgrades Bharti Airtel

Standard & Poor's said it raised its corporate credit rating on Bharti Airtel Ltd. to BBB- from BB+.

The outlook is stable.

The agency said the upgrade reflects the company's stronger-than-anticipated operating performance and improved cash flow generation supported by greater economies of scale. And despite high capital spending and intense competition, S&P expects Bharti Airtel's credit measures to remain in the current rating category.

Bharti Airtel's strong subscriber growth and improved cash flow measures are somewhat offset by the intense competition faced by the company and its aggressive expansion plan, with a budgeted capital spending of $3.3 billion to $3.5 billion annually in the near term, S&P said.

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