RIL’s foreign currency rating negative: S&P

Standard & Poor’s (S&P) Ratings Services has affirmed its ‘BB’ long-term foreign currency ratings on Reliance Industries Ltd (RIL) as the company’s credit quality has remained within the current rating parameters. The outlook is negative, it stated.

“Reliance’s foreign currency rating remains constrained by the sovereign credit risk of the Republic of India,” credit analyst and director in S&P’s corporate and infrastructure ratings group Sharad Jain said. He added: “Reliance, like other Indian corporate entities, is subject to the foreign exchange controls and regulations imposed by the government. India still exercises tight control over foreign exchange flows, despite substantial liberalisation efforts in the past decade.