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3G: Fitch studying revenue impact on Bharti

Last Updated: Wednesday, January 13, 2010 - 22:01

New Delhi: Even as the Government is gearing up to auction radio waves for the next generation mobile services, credit rating agency Fitch on Wednesday said it is closely monitoring the impact of the cost for pan-India 3G licence on the revenues of Bharti Airtel.

The agency is currently monitoring the negative impact on Bharti`s revenues stemming from the pending cost of 3G pan-India licence fees and its impact on its credit profile, Fitch said in a statement here on Wednesday.
It is also monitoring the impact of irrational pricing activity by the operators during October-December 2009, it added.

Fitch, however, said Bharti`s acquisition of the Bangladesh operator Warid will not have an impact on the former`s ratings. Bharti Airtel had acquired 70 per cent stake in Bangladesh`s Warid Telecom for USD 300 million.
Fitch has a long-term rating of `BBB-`with a stable outlook on Bharti, and notes that the incremental capex and Warid`s existing debt will not materially impact Bharti`s credit profile, Fitch said.

Meanwhile, global rating agency Standard & Poor`s said that rating of Bharti is not affected by the company acquiring 70 per cent stake in Warid Telecom International`s Bangladesh operations.

"The proposed acquisition is in line with Bharti`s strategy to expand its international operations, especially in emerging markets that provide significant growth opportunities," S&P said in a statement.

The rating agency has assigned BBB- rating to the company, which is the lowest investment grade rating.


First Published: Wednesday, January 13, 2010 - 22:01

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