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<\/span><\/figcaption><\/figure>NEW DELHI: Global rating agency Fitch<\/a> on Thursday affirmed Bharti Airtel<\/a> Limited (BAL)’s long-term currency Issuer Default Rating (IDR) and senior unsecured rating at ‘BBB-’ with a negative outlook on IDR, on the back of probability of India’s country ceiling being lowered to ‘BB+’ from ‘BBB-’ currently.

Airtel’s subsidiary in the Netherlands, Bharti Airtel International, has been assigned a ‘BBB-’ rating for unsecured guaranteed bonds.

“The Negative Outlook does not reflect our view of Bharti's underlying credit profile - which has been improving on strong growth in Indian and African wireless operations - but rather the heightened probability that India's (BBB-\/Negative) Country Ceiling of 'BBB-' could be lowered to 'BB+'. Such an action would constrain Bharti's IDR and senior issue ratings to 'BB+',” Fitch said.

“Bharti's IDR and senior issue ratings are not directly constrained by the sovereign rating but cannot exceed the Country Ceiling, which reflects the transfer and convertibility risks associated with foreign-currency obligations,” it added.

Airtel's shares on BSE closed 0.82% higher at Rs 764.95 today.

Fitch estimates Bharti’s FY22 funds from operations (FFO) net leverage to be 1.8-2.0x in the FY22, well below the threshold of 2,5x beyond which the agency will take “negative rating action”.

“We expect Bharti's FY22 revenue to rise by 10%-12% and EBITDA by 20%-22%, on improvement in the Indian wireless market and strong growth in the African markets. In 1HFY22 consolidated revenue and EBITDA rose by 14% and 32% yoy, respectively, defying the Covid-19 slowdown as it added 30 million subscriber additions,” Fitch said.

\"Airtel<\/a><\/figure>

Airtel in a sweet spot to maintain relative strength among peers: Analysts<\/a><\/h2>

Bharti Airtel (Airtel) announced a tariff hike in its prepaid segment with ~20% tariff hike across the board, ~25% hike in base entry level 2G tariff from Rs 79 to Rs 99 with effect from November 26, 2021.<\/p><\/div>

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<\/span><\/figcaption><\/figure>NEW DELHI: Global rating agency Fitch<\/a> on Thursday affirmed Bharti Airtel<\/a> Limited (BAL)’s long-term currency Issuer Default Rating (IDR) and senior unsecured rating at ‘BBB-’ with a negative outlook on IDR, on the back of probability of India’s country ceiling being lowered to ‘BB+’ from ‘BBB-’ currently.

Airtel’s subsidiary in the Netherlands, Bharti Airtel International, has been assigned a ‘BBB-’ rating for unsecured guaranteed bonds.

“The Negative Outlook does not reflect our view of Bharti's underlying credit profile - which has been improving on strong growth in Indian and African wireless operations - but rather the heightened probability that India's (BBB-\/Negative) Country Ceiling of 'BBB-' could be lowered to 'BB+'. Such an action would constrain Bharti's IDR and senior issue ratings to 'BB+',” Fitch said.

“Bharti's IDR and senior issue ratings are not directly constrained by the sovereign rating but cannot exceed the Country Ceiling, which reflects the transfer and convertibility risks associated with foreign-currency obligations,” it added.

Airtel's shares on BSE closed 0.82% higher at Rs 764.95 today.

Fitch estimates Bharti’s FY22 funds from operations (FFO) net leverage to be 1.8-2.0x in the FY22, well below the threshold of 2,5x beyond which the agency will take “negative rating action”.

“We expect Bharti's FY22 revenue to rise by 10%-12% and EBITDA by 20%-22%, on improvement in the Indian wireless market and strong growth in the African markets. In 1HFY22 consolidated revenue and EBITDA rose by 14% and 32% yoy, respectively, defying the Covid-19 slowdown as it added 30 million subscriber additions,” Fitch said.

\"Airtel<\/a><\/figure>

Airtel in a sweet spot to maintain relative strength among peers: Analysts<\/a><\/h2>

Bharti Airtel (Airtel) announced a tariff hike in its prepaid segment with ~20% tariff hike across the board, ~25% hike in base entry level 2G tariff from Rs 79 to Rs 99 with effect from November 26, 2021.<\/p><\/div>