Bharti Airtel gets a credit boost from S&P
Bharti Airtel just got its credit rating bumped up by S&P—from "BBB-" to "BBB" with a positive outlook.
This upgrade is thanks to strong expectations for more users and higher average revenue per user (ARPU) over the next couple of years, mostly from people using more data and choosing premium plans.
Interestingly, this new rating stands on its own, separate from India's overall credit score.
Growth numbers are up, but debt is on the radar
Airtel's latest quarterly results showed big gains: revenue jumped 25.7% to ₹52,145 crore and net profit soared 89% to ₹6,792 crore.
The company now has 364 million wireless subscribers and ARPU climbed to ₹256.
Still, S&P flagged some worries about rising debt at Bharti Telecom Ltd., which might need Airtel's dividends to help pay it off—but overall, they're confident in Airtel's strong position in India's telecom scene.