No negative impact, say rating firms

Rating firms ruled out any negative impact on ratings of Ambani-controlled Reliance group of companies following Saturday’s deal.Naresh...

Rating firms ruled out any negative impact on ratings of Ambani-controlled Reliance group of companies following Saturday’s deal.

Naresh Thakkar of Icra said with clarity coming in post-settlement, uncertainty has reduced. “This will definitely positive from the rating perspective and lower the discounting level,” he said.

A senior Fitch official said the settlement is unlikely to impact the rating perspective. In fact, from the investors’ point of view, they would be better off post settlement. The two Ambani brothers would be in a better position to focus on the business.

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According to Rajesh Mokashi, ED, CARE, although the agency does not rate the Reliance group of companies, from a broader perspective, the resolution has come through as a healthy development.

These companies, irrespective of the settlement, have been run in a professional manner and have always protected their shareholders.

Meanwhile, LIC which holds over 4.5 per cent stake in RIL said that the pact protects interests of investors and adds value to their investments. The insurance player has significant stake in RIL in the form of shareholding and debt exposure of Rs 2,700 crore and the settlement is good for the investors, LIC Executive Director S.C. Bhargava said on Saturday.