Fitch rates Bharti Airtel notes BBB-

Fitch Ratings said it assigned an expected rating of BBB- to Bharti Airtel International (Netherlands) BV's proposed Swiss franc senior unsecured notes.

The notes will be unconditionally and irrevocably guaranteed by Bharti Airtel Ltd. and are rated at the same level as Bharti's foreign-currency senior unsecured rating of BBB-.

The entire proceeds will be used to refinance the company's existing debt, Fitch said.

The terms and conditions of the proposed bond are identical to Bharti's existing guaranteed bonds of €1 billon due 2018 and $1.5 billion due 2023, the agency said. The notes will rank pari passu with the issuer's existing and future senior unsecured indebtedness, Fitch said.

The ratings reflect an expected improvement in the company's leverage, the agency said.

An expected improvement in free cash flow generation will more than offset the addition of debt from the acquisition of Qualcomm's spectrum for $1 billion and the increase in leverage, Fitch said.

The profitability of its African operations will improve gradually, the agency added, benefiting from rising economies of scale on a growing subscriber base and traffic minutes.

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