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Airtel just got assigned its lowest credit score by an international ratings agency as pricing pressures continue | Business Insider India

Earlier this morning, Moody’s, an international ratings agency, downgraded Airtel’s debt to “significant credit risk” or “Ba1m”giving the telecom major an overall negative outlook. This was the first time that Airtel received this rating for its senior unsecured debt.

The reason? The competitive nature of the Indian telecom market.

The ongoing pricing war in India’s telecom sector in the aftermath of Reliance Jio entering the market, has seen service providers offer rock-bottom prices and unlimited data packages, significantly denting their profitability and revenues.

Moody’s Vice President, Annalisa DiChiara, attributed the decision to, “uncertainty as to whether or not the company’s profitability, cash flow situation and debt levels can improve sustainably and materially.” Airtel’s profitability is expected to remain subdued over the next few quarters as pricing pressures continue.

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Airtel just got assigned its lowest credit score by an international ratings agency as pricing pressures continue | Business Insider India.

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