Bharti Airtel has capacity to withstand $5 billion payout
Moody's Investors Service said on Wednesday said Bharti Airtel has the financial capacity to withstand a payout of $5 billion in statutory dues.
New Delhi: Moody's Investors Service said on Wednesday said Bharti Airtel has the financial capacity to withstand a payout of $5 billion in statutory dues.
The Supreme Court earlier this month directed telecom firms to comply with its October 24, 2019 judgment upholding the Department of Telecommunication's (DoT) definition of adjusted gross revenues (AGR).
Bharti recorded a Rs 35,300 crore ($5 billion) liability for past-due AGR fees associated with this litigation but is still completing its self-assessment to determine the final amount, Moody's said.
It said a Rs 35,300 crore cash payment will not cause a significant deterioration in the credit quality of Bharti Airtel while in the alternate scenario of a smaller cash payment of Rs 25,200 crore reflecting the principal and interest amount only, would position the company more comfortably within its current rating. Full payment is to be made by March 17.