Moody's Affirms Reliance Industries' Baa2 Rating Amid Growth Prospects

Moody's Ratings announced on Friday that it has affirmed Reliance Industries Ltd's (RIL) Baa2 long-term issuer and foreign currency senior unsecured ratings, with a stable outlook. This decision highlights the company's extensive operations and leading positions across sectors such as oil-to-chemicals, upstream oil and gas, digital services, and organized retail.

According to Kaustubh Chaubal, Senior Vice President at Moody's Ratings, RIL's robust financial metrics and solid liquidity continue to support its resilience, even amid significant capital expenditures. Moody's forecasts indicate that RIL's consolidated EBITDA could reach approximately Rs 2 lakh crore (USD 23 billion) for FY2025-26, with a steady growth of 3-4 percent annually over the next two years, propelled by telecom and retail performance.

RIL's digital and retail segments are major growth drivers, with Reliance Jio leading the Indian telecom market with over 506 million subscribers and the retail operations capitalizing on product diversity and technological investments. Moody's projects stable earnings from RIL's oil-to-chemicals and upstream ventures, supported by integration and feedstock versatility, while noting the company's excellent liquidity position.