CRISIL has reaffirmed 'AA+/Stable/A1+' ratings on the debt programmes and bank facilities of Bharti Airtel. The ratings continue to reflect Bharti Airtel's dominant market position in the telecommunications (telecom) sector in India, along with healthy operating efficiencies in India and Africa.

The ratings also factor in the strong financial flexibility and strategic measures initiated by Bharti Airtel to reduce its debt. These rating strengths are partially offset by the company's high gearing, along with exposure to regulatory changes and technological risks in the telecom sector.

CRISIL believes that Bharti Airtel will continue to maintain its leading position in the Indian telecommunications market over the medium term. Its position in key markets of Africa is expected to improve gradually on the back of steady increase in uptake of minutes, demand for mobile internet and e-commerce translating into better operating performance.

CRISIL has factored in the debt reduction measures undertaken by Bharti Airtel and anticipates the leverage to reduce over the next two years. The outlook may be revised to 'Positive' if the company achieves better-than-anticipated improvement in its gearing, driven by healthy cash flows, or sizeable equity infusion. Conversely, the outlook may be revised to 'Negative' if Bharti Airtel's profitability is below CRISIL's expectations, or unfavourable regulatory changes in the Indian telecom sector significantly impact the company's cash flows, resulting in a slower-than-expected improvement in its gearing. The outlook may also be revised to 'Negative' if the company's debt levels remain high over the medium term.

Shares of the company declined Rs 3.9, or 1.01%, to trade at Rs 381.95. The total volume of shares traded was 256,853 at the BSE (2.50 p.m., Friday).