CRISIL's ratings on the existing instruments of Reliance Gas Transportation Infrastructure (RGTIL; rated CRISIL AAA/Stable/CRISIL A1+) remain unaffected following the refinancing of its rupee term loans. RBI through its August 2014 notification on 'refinancing of existing long term project loans' has allowed banks to refinance existing project term loans, and fix a longer repayment period taking into account the project life-cycle and cash-flows, subject to certain conditions.

RGTIL, being eligible under this facility, has received sanctions from banks for refinancing of its existing rupee term loans, which are now repayable over a period of 16 years, thereby better aligning RGTIL’s project cash-flows to its annual debt obligations. The principal repayment for all other debt of the company remains unchanged.

For arriving at the ratings, CRISIL takes a consolidated view of the business and financial risk profiles of Reliance Ports and Terminals Ltd (RPTL), Reliance Utilities and Power Pvt Ltd (RUPPL), RGTIL and Reliance Industries Holding Pvt Ltd (RIHPL) (collectively referred to as the RIHPL group) given the common ownership, significant business linkages with RIL and the cash flow fungibility among these four RIHPL group companies. Any material change in the ownership of these companies will be a key rating sensitivity factor.

The ratings continue to reflect the strong operational linkages of RPTL, RUPPL and RGTIL with RIL, their high financial flexibility, and the common ownership of these three companies with RIHPL. These strengths are, however, partially offset by the companies' high gearing and large quantum of external debt and sensitivity of cash flows to the volume of gas available for transportation.