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S&P Ratings
S & P Global Ratings on Tuesday assigned BBB negative long-term issue rating to senior unsecured notes that Bharti Airtel Ltd proposes to issue.At the same time, it assigned BB long-term issue rating to proposed subordinated perpetual securities (PERPS) issued by Network i2i Ltd and guaranteed by Bharti Airtel.Bharti Airtel will use the proceeds for capital expenditure, repayment of existing debt or any other purpose as allowed by regulations.The proposed PERPS are similar to the existing PERPS, ranking senior only to Bharti Airtel's equity. They will have five-year resettable coupons starting from 5.25 years with step-ups of 25 basis points after the initial term of 10.25 years and a further 75 basis points after 25.25 years."Hence, we consider the PERPS to have an effective maturity of 25.25 years," said S & P."Consequently, we assess the proposed PERPS as having intermediate equity content up to the first reset date at 5.25 years."This is because the remaining period until .
India will have to persistently make efforts for improvement in its sovereign rating by different global agencies in line with its economic fundamentals, Chief Economic Adviser K V Subramanian said on Saturday. The Economic Survey presented in Parliament on Friday expressed concern over lower sovereign rating assigned by agencies like Fitch, S&P and Moody's to India despite its strong economic fundamentals. "We have made the case very very forcefully (to rating agencies)...These changes happen over time. They don't happen instantaneously, but you have to continue making efforts," he told PTI in an interview. The Survey said sovereign credit ratings methodology must be amended to reflect economies' ability and willingness to pay their debt obligations, and suggested that developing economies must come together to address this bias and subjectivity inherent in sovereign credit ratings methodology. "Never in the history of sovereign credit ratings has the fifth largest economy in the