Moody's places Airtel on review for a possible rating downgrade

Hong Kong-based Moody's Investors Service (Moody's) has placed on review for possible downgrade of the Baa3 issuer and senior unsecured rating of Bharti Airtel (Bharti) and the ratings on the backed senior unsecured notes issued by Bharti's wholly owned subsidiary, Bharti Airtel International (Netherlands) BV.

The review reflects the company's low levels of profitability, particularly from its core Indian mobile operations, negative free cash flow and higher debt levels to fund capital spending.

"The review for downgrade is primarily driven by our expectation that Bharti's cash flow generation will remain weak and leverage elevated," says Annalisa DiChiara, a Moody's Vice