“We expect the outlook to reflect our expectation of an improvement in RIL’s financial metrics because we believe the consistent improvement in the company’s operating performance over the past years is sustainable,” S&P said in a statement.
The agency affirmed or retained Reliance Industries’long-term corporate credit rating at BBB, which indicates ‘Investment Grade’ medium class borrowers who are satisfactory at the moment.
S&P said it expects RIL’s operating profit for the previous fiscal ended March 31, 2010, to improve by 20 per cent, driven by its KG D6 block gas production which surpassed 60 mmscmd (million standard cubic meter per day) within 12 months of commencement and strong market conditions for the petrochemical business.
Besides, it said RIL has done a successful ramp-up of the new Jamnagar refinery.
S&P also said that RIL is expected to use its cash flows for growth.
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