RIL’s $6-bn capex will delay deleveraging; investments credit neutral: S&P

RIL CMD Mukesh Ambani (right) with BP Group Chief Executive Bob Dudley at a press conference in New Delhi on Thursday. Ambani said demand for fuel was expected to grow by 5-7% every year over the next decade. Photo: Sanjay K Sharma

Latest News – Rating agency S&P has said the Rs 40,000-crore capex that Reliance announced last week in deep water gas fields will delay its deleveraging, but maintained that the investment plan is credit neutral.

It expects that investment along with the fledgeling telecom venture, into which RIL has pumped in over Rs 1.3 lakh crore so far, will contribute a 50 per cent increase in operating income.

“The proposed $6 billion investments will slightly delay Reliance’s deleveraging as any meaningful improvement in the leverage ratio will (Read More)

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