Moody’s says Reliance stake sale to Aramco credit positive


Moody’s says Reliance stake sale to Aramco credit positive

Moody’s Investors Service on Wednesday said Reliance Industries’ announcement of sale of a 20 per cent stake in its oil to chemicals (O2C) business to Saudi Arabian Oil Company (Aramco) will reduce the company’s net leverage and is credit positive.

“The O2C business, which has an enterprise valuation of USD 75 billion, includes RIL’s refining and petrochemical divisions, and RIL’s 51 per cent stake in its fuel marketing business,” Moody’s said in a report. The company also announced that it has entered into a deal with BP to sell 49 per cent stake in its fuel marketing business in India for USD 1 billion.

“Together, proceeds from these transactions will result in a USD 16 billion reduction in RIL’s net debt, which will reduce RIL’s adjusted net debt/EBITDA by 1.2x from 3.2x for fiscal year 2019, which ended in March 2019, a credit positive,” it said. Read more

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