Global rating agency, Standard & Poor, on Tuesday said that it has revised its outlook on Reliance Industries Ltd (RIL) to stable from negative.
At the same time, the agency affirmed the ‘BBB’ long-term corporate credit rating on RIL and the ‘BBB’ issue rating on the company’s senior unsecured notes.
“We revised the outlook to reflect our expectation of an improvement in RIL’s financial metrics because we believe the consistent improvement in the company’s operating performance over the past year is sustainable,” Standard & Poor’s Corporate & Government Ratings, South and Southeast Asia, Managing Director and credit analyst, Suzanne Smith, said.
The agency said in its report that RIL’s EBITDA to have increased by 20 per cent for FY ’10. The improvement is driven by reasons such as gas production at the KG-D6 block surpassing 60 mmscmd (million standard cubic meter per day) of gas within 12-months of starting production, the strong market conditions for the petrochemical business, and the successful ramp-up of the new Jamnagar refinery, the report said.
These factors offset the effects of the very weak market environment for the refining business, it added.