Moody’s calls Airtel stake sale in Infratel credit positive

KOLKATA: Moody’s Investors Service said Bharti Airtel’s 4.49% stake sale in tower arm, Bharti Infratel, is a credit positive but cautioned that the transaction would not have any immediate positive impact on the telco’s rating and outlook as fierce price wars are likely to continue in the sector, which, could hit the market leader’s operating performance over the next one year.

“The stake sale in Bharti Infratel is credit positive as it is in line with the ( Airtel) management’s commitment to strengthen the telco’s balance sheet and reduce debt, but there is no immediate impact on Bharti’s ratings and outlook,” Moody’s Investors Service said in a statement Wednesday.

Bharti Airtel raised Rs 3,325 crore by selling 4.49% in tower unit to global investors on Tuesday.