CRISIL reaffirms ratings to RIL, Reliance Energy Ltd and IPCL
20 June 2005
CRISIL, has reaffirmed its earlier credit ratings of 'outstanding' to the debt instruments of three companies of the Reliance group RIL (AAA/Stable/P1+), REL (AAA/Stable/P1+), and IPCL (AA/FAA+/Stable/P1+).
For all these companies, CRISIL's ratings are primarily driven by the exceptionally strong business and financial profiles of the respective companies. Ownership, governance, and management issues are distinct elements of CRISIL's analytical framework in assessing credit worthiness.
"In CRISIL's opinion all three companies have capable and experienced management teams with a proven track record in their core businesses and in running the day to day operations," notes a communiqué from CRISIL, issued on Saturday in the aftermath of the settlement between Mukesh Ambani and Anil Ambani.
CRISIL is monitoring the developments in the Reliance group for any likely impact of the settlement on the ownership, financial profile, business and growth strategies, or management structure of these companies. "If there is a material impact on any of these, as a result of the settlement, CRISIL will review its ratings," the communiqué concludes.