Delhi: Global rating agency Standard and Poor's has cautioned that the
credit quality of the Mukesh Ambani-controlled Reliance group flagship, Reliance
Industries Ltd might "weaken" if significant cash outflows were
part of the settlement between him and younger brother Anil.
financial details are still "unclear", S&P said, "specifically,
significant cash outflows, possibly resulting from share repurchases, division
and distribution of liabilities and / or the contingent obligations on RIL,
could materially affect the company's financial profile, which might weaken
its credit quality."
S&P noted that the de-merger and eventual exit of RIL
from the group's capital-intensive telecommunications and power business should
not have a negative impact on its business risk profile and may even have
a positive impact.