Rediff India Abroad Home  |  All the sections

Search:



The Web

India Abroad




Newsletters
Sign up today!

Article Tools
Email this article
Top emailed links
Print this article
Contact the editors
Discuss this article
Home > Business > Business Headline > Report


No review of Reliance now: Crisil

December 17, 2004 12:48 IST

Credit rating agency Crisil will review its ratings on Reliance group companies if the public spat between Ambani brothers affects the functioning of the companies.

It believes no rating action is warranted at this juncture as the day-to-day functioning of Reliance Industries Ltd, Reliance Energy Ltd and Indian Petrochemicals Corporation Ltd has not been affected.

The Reliance 'ownership issue'

Crisil said it is in dialogue with RIL and REL. If there is a material impact on the business and growth strategies or management structure of these companies due to ownership and governance related issues, CRISIL will review its ratings.

A Crisil official said if the fight between Ambani brothers over ownership of the Reliance group drags on, the agency at some point will have to take a rating action.

The rating agency said ownership, governance and management issues are distinct elements of Crisil's analytical framework in assessing creditworthiness.

In its 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.

The financial position of RIL and REL is characterised by a strong networth, robust cash generation from operations and comfortable interest and debt coverage ratios.

Powered by

Share your comments


Advertisement






Copyright 2005 Rediff.com India Limited. All Rights Reserved.