CRISIL has assigned its 'A-/Stable' rating to the Rs 500 million non-convertible debentures (NCD) of Dish TV India (DTIL), and has reaffirmed its rating on the company's long-term bank loan facilities and other debt programme at 'A-/Stable'.

The rating continues to reflect 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 rating also factors in the strong support that DTIL receives from the Essel group because of the company's strategic importance in the media business.

These rating strengths are partially offset by DTIL's moderate financial risk profile marked by high, though reducing, debt levels and a negative net worth. Furthermore, DTIL is also exposed to risks such as competition, capital intensity, and high regulatory compliance, inherent in the DTH 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' if the company registers a significant and sustained improvement in its financial risk profile over the medium term. Conversely, the outlook may be revised to 'Negative' if DTIL undertakes a significant debt-funded capex programme, or records lower-than-expected profitability over the medium term.

Shares of the company declined Rs 0.65, or 1.14%, to trade at Rs 56.45. The total volume of shares traded was 212,700 at the BSE (1.07 p.m., Monday).