Jio Platforms’ initial public offering (IPO) will strengthen Reliance Industries' (RIL) financial flexibility by helping reduce borrowings and supporting investments in telecommunications networks and digital services, Moody’s Ratings said, as the conglomerate prepares for a period of elevated capital expenditure.
Moody’s analysts Kaustubh Chaubal, Justin Tan and Jacintha Poh described the IPO as credit positive for RIL, which carries a Baa1 rating with a stable outlook. The agency said the principal benefit would be greater funding flexibility rather than a material improvement in leverage or liquidity over the next 12 months.
