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After Moody’s downgrade, Bharti Airtel says businesses continue to remain strong; here’s what firm said

Ashish Pandey

After Moody s on Tuesday downgraded credit rating, Bharti Airtel said the growth in data volumes and imminent recovery in voice tariffs will help business.”Bharti Airtel and its businesses continue to be diversified and strong. While Africa and non-mobile businesses in India exhibit healthy momentum, the continuing trend of robust growth in data volumes in India and also the imminent recovery in voice tariffs will further help overall business going forward, the telco said in a regulatory filing.

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The telecom major also said that the capital structure has already benefitted from the recent equity infusions through investors in its Africa business as also infusion in India s DTH business.

With the Africa debt (including the acquisition debt) already reduced to $3.5 bn due to the above initiatives (and prior to planned IPO), as also the fact that $6 Bn of debt in India is under 16 year deferred spectrum payments , it added.

Meanwhile, the rating agency today downgraded the credit rating of telecom operator Bharti Airtel and the backed senior unsecured notes issued by the telco s Africa arm on account of uncertainty around the company s profitability, cash flow situations and debt levels.

Moody s Investors Service ( Moody s ) has downgraded to Ba1 from Baa3 the senior unsecured rating for Bharti Airtel Ltd. (Bharti) as well as the backed senior unsecured notes issued by Bharti s wholly-owned subsidiary, Bharti Airtel Int l (Netherlands) B.V., the agency said in statement.

Bharti Airtel, last week, reported a 72 per cent drop in consolidated net income for the three months ended December 2018 at about Rs 86 crore.