Reliance Industries Ltd’s operating performance is likely to remain resilient over the next two years, as the firm’s growing presence in the digital and retail segments will temper softer earnings in the energy business, S&P Global Ratings said on Thursday.
The rating agency affirmed its ‘BBB+’ rating — equivalent to the sovereign rating assigned to India — to Reliance (RIL) with a stable outlook, reflecting the view that RIL’s cash flows will help it preserve its financial profile, despite elevated investments over the next 24 months.
In a statement, S&P said Reliance’s expansion plans for the next two years are manageable. Capex will remain elevated, but lower than the levels of fiscal 2023 (ended March 31, 2023).
