Fitch retains Airtel's ratings at BBB-, outlook stable

International rating agency Fitch today retained its ratings on Bharti Airtel at BBB- along with a stable outlook, citing the unlikelihood of a further drop in tariffs coupled with its rising non-telecom revenue streams.

The agency has a BBB- ratings on Bharti's long-term foreign-currency issuer default rating (IDR) and senior unsecured rating along with a BBB- ratings on the bonds issued by its subsidiary Bharti Airtel International Netherlands.

It said the rating reflects Bharti's diversified and integrated business profile, with operations spanning mobile, fixed-line, digital TV, telecom tower and enterprise sectors in the home market along with mobile operations in Sri Lanka and 14 African markets.

"Bharti will increase its home market mobile revenue market share to 35-36 per cent, on completion of its acquisition of Tata Tele, despite high competitive intensity," Fitch said.

The agency, however, was quick to add that "any further increase in competitive intensity could weigh on its ratings, as it has low rating headroom."