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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.
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.