Bharti Airtel share price rises after Moody's revises rating outlook to stable from negative

The research firm revised the rating on account of easing of competition in the telecom sector, increase in 4G customer base and mobile services rates from December.

Bharti Airtel share price gained a percent at open on September 14 after Moody's Investors Service on September 11 revised Bharti Airtel's credit outlook rating to stable from negative.

The research firm revised the rating on account of easing of competition in the telecom sector, increase in 4G customer base and mobile services rates from December. It also considered options given to the company to make payment of pending adjusted gross revenue in installments while revising the outlook.

"Moody's Investors Service has affirmed Bharti Airtel Ba1 corporate family rating and senior unsecured rating as well as the backed senior unsecured notes issued by Bharti's subsidiary, Bharti Airtel Int'l (Netherlands) B.V. At the same time, Moody's has changed the rating outlook to stable from negative," Moody's said in a statement. Credit rating indicates ability of a company to pay back debt.

The stock price was trading at Rs 491.40, down Rs 0.25, or 0.05 percent. It has touched an intraday high of Rs 498.00 and an intraday low of Rs 491.25.

"The ratings affirmation and change in outlook to stable reflect improving profitability at Bharti's core Indian mobile business, because of a moderation in industry competition, an increase in its 4G customer base, and a tariff hike from December 2019," Moody's Senior Vice President Annalisa DiChiara said.