MUMBAI, May 29 (Reuters) - Ratings agency Standard & Poor’s on Wednesday raised the long term corporate credit rating on India’s Reliance Industries to “BBB-plus” from “BBB”, with a “negative” outlook, it said in a statement.
“Reliance’s articulation of its growth strategy removes the uncertainty regarding the company’s use of its high cash balance,” Standard & Poor’s Credit Analyst Andrew Wong said.
Reliance has outlined plans to spend about $30 billion over the next few years, nearly 75 percent of this in its core energy businesses of refining, petrochemical, and exploration and production (E&P).
The company held cash reserves of about $15 billion at March-end.
S&P said the negative outlook on Reliance reflected the outlook on India’s sovereign credit rating of “BBB-minus” with a “negative” outlook.