S&P Global Ratings on Wednesday said its rating on Reliance Industries is unaffected as the company’s energy projects will soon start generating cash flows and offset the impact of outgo because of large spectrum purchase.
S&P said RIl’s spending of Rs 13,700 crore on the spectrum purchase was much higher than anticipated and reflects focus on meeting growth in data with adequate capacity and also the strong subscriber response to the launch of its Jio service in September 2016.
The rating on Reliance Industries is unaffected by the company’s large spectrum purchase, S&P Global Ratings said in a statement. The US-based agency said RIl's brownfield and greenfield projects will soon start generating cash flows and support significant improvement in financial ratios.