Fitch retains highest long-term debt rating of RIL

NEW DELHI: Rating agency Fitch on Thursday retained highest long-term debt rating of Mukesh Ambani-owned Reliance Industries Limited due to its dominant position in the Indian petrochemicals sector and its efficient refining operations.

"The ratings reflect RIL's efficient refining operations and its dominant position in the Indian petrochemicals sector," the rating agency said in a release.

It further said that the rating takes into account RIL's robust cash generation from core businesses.

Fitch has retained RIL's national long-term rating at AAA with stable outlook. AAA rating is assigned to issuers where there is lowest expectation of default risk relative to all other issuers in the same country.

The rating agency has also retained long-term foreign and local currency Issuer Default Ratings (IDRs) of RIL at BBB-.

BBB indicates that the expectations of default risk are currently low and the capacity for payment of financial commitments is considered adequate, '-' is one notch lower.

It added that with increasing vertical integration across the oil and gas supply chain (upstream, refining and petrochemicals), RIL's business profile should strengthen in the future.

"RIL has good access to external financing sources. The company's liquidity position is comfortable," Fitch said.