CRISIL has revised its rating outlook on the long-term bank facilities of Sterlite Technologies (STL) to ‘Positive’ from ‘Stable’, while reaffirming the rating at ‘AA-’; the rating on the company’s commercial paper programme has been reaffirmed at ‘A1+’.
The outlook revision reflects that STL’s financial risk profile could improve over the medium term on the back of improvement in profitability and net cash accruals, given its healthy business prospects. Increased profitability without significant increase in overall debt levels is estimated to have improved the ocmpany’s net debt to earnings before interest, depreciation, amortisation and taxes (EBITDA) to marginally below 2 times in fiscal 2017 (2.5 times in fiscal 2016).
Sterlite Technologies has strong expertise in managing very large-scale broadband network deployments in urban and rural areas through projects such as BharatNet, Network for Spectrum, Smart Cities, FTTH, 4G, among others. All the learning and global standards have been leveraged while structuring the curriculum.