CRISIL has assigned its 'A-/Stable' rating to the proposed long-term bank loan facility and non-convertible debenture programme of Dish TV India (DTIL).

The rating reflects DTIL's leadership position in the Direct to Home (DTH) industry, healthy operating efficiency marked by low content cost and strong cash accruals, and strong liquidity. The ratings also factor in the strong support that DTIL receives from Essel Group due to the company's strategic importance in the media business.

These rating strengths are partially constrained by DTIL's moderate financial risk profile marked by high, albeit reducing, debt levels and negative net worth. Furthermore, DTIL is also exposed to risks, such as competition, capital intensity and high regulatory compliance, inherent in the industry.  

CRISIL believes that DTIL will maintain its market leadership and healthy operating efficiency, leading to strong cash accruals over the medium term. The outlook may be revised to 'Positive' in case the company registers significant and sustained improvement in its financial risk profile over the medium term.

Conversely, the outlook may be revised to 'Negative' in case DTIL undertakes a significantly larger-than-expected debt-funded capex programme, or records lower-than-expected profitability over the medium term.

Shares of the company declined Rs 0.80, or 1.32%, to trade at Rs 59.70. The total volume of shares traded was 466,252 at the BSE (11.34 a.m., Wednesday).