Moody’s assigns Baa2 to Reliance’s proposed USD perpetual bonds

NEW DELHI: Moody’s Investors Service has assigned a provisional (P)Baa2 rating to the proposed USD-denominated senior unsecured perpetual bonds issued by Reliance Industries Ltd. The outlook on the rating is stable.

The rating agency has also affirmed the company’s existing Baa2 local currency issuer rating with a positive outlook and Baa2 foreign currency issuer rating with a stable outlook.

Moody’s expects to remove the provisional status of the bond rating upon closing of the proposed issuance and a review of its final terms.

“The bond will rank pari passu with all of RIL’s other existing and future unsecured and unsubordinated obligations. Although the proposed bond is a perpetual instrument, it does not have any loss absorption features including coupon deferral,” said Vikas Halan, Moody’s Vice President and Senior Analyst.

“Therefore we rate the bond at the same level as RIL’s foreign currency denominated senior obligations,” he added.