Fitch Ratings has affirmed India-based Reliance Industries (RIL) long-term foreign-currency issuer default rating (IDR) at 'BBB-', and its long-term local-currency IDR at 'BBB'. The outlook on the ratings is stable.

The rating agency said, "RIL's ratings are supported by its strong business profile - a large-scale refinery with capacity of around 1.4 million barrels per day, and robust asset quality, which enables it to consistently deliver gross refining margins (GRM) above regional benchmarks. The company has a somewhat integrated business, with downstream petrochemical operations as well as upstream, together with strong operating cash flows and ample liquidity."

"The company is in the midst of a large capex programme of more than USD 30 billion that will run through to the financial year ending March 2017 (FY17). The capex is largely in its refining and petrochemical segments and its new telecoms venture in India," it said.

Fitch added that the high capex has led to an increase in net financial leverage (net adjusted debt to operating EBITDA). RIL's operating and expected financial profile places its unconstrained credit profile at the 'BBB' level, which is reflected in the company's local-currency IDR; its foreign-currency IDR is constrained by India's 'BBB-' Country Ceiling. 

Shares of the company declined Rs 0.55, or 0.06%, to trade at Rs 932.50. The total volume of shares traded was 28,885 at the BSE (10.28 a.m., Tuesday).