No impact on RIL ratings post-block deal: Moody's

NEW DELHI: Global rating agency Moody's on Monday said the sale of treasury shares by the Mukesh Ambani-run Reliance Industries will have no immediate impact on the country's largest private company's ratings.

The company has been assigned Baa2 ratings with stable outlook. Baa2 rating is a medium grade rating, reflecting moderate credit risk. Stable outlook indicates the rating is unlikely to be downgraded.

"While the equity-raising exercise is credit-positive, it does not have an immediate impact on the rating, as the rating agency expects RIL to use the proceeds for a potential takeover of LyondellBasell, as well as for other strategic initiatives that could emerge over the medium-term," Moody's said in a release today.

Reliance today raised Rs 3,465 crore by selling 3.3 treasury stocks for the second time this month amid the company upping its bid to $13.5 billion for the failed Dutch petrochemicals firm LyondellBasell.

RIL last week had raised its bid for LyondellBasell to $13.5 billion from the initial $12 billion offered in November.

This is the second treasury share sale by RIL this month, taking its total mop-up from the open market to Rs 6,140 crore.