CRISIL has reaffirmed 'AAA/Stable/A1+' ratings on the debt instruments and bank facilities of Reliance Industries (RIL). The ratings continue to reflect RIL's leadership in the petrochemicals industry in India, strong competitiveness in the global oil refining business, and exceptional financial flexibility.
These rating strengths are partially offset by RIL's exposure to risks relating to reducing gas volumes at its largest gas production field, the Krishna-Godavari D6 (KG-D6) and project execution and implementation risks associated with the telecom business.
CRISIL believes that RIL's credit risk profile will continue to be supported over the medium term by its highly integrated operations in its core businesses of oil refining and petrochemicals, its large scale of operations, and its exceptional liquidity. The rating outlook may be revised to 'Negative' if RIL undertakes significantly large debt-funded capex or acquisition or investments, thereby weakening its capital structure without commensurate increase in profitability.
