Moody’s Affirms Reliance’s Baa2 Rating, Outlook Stable

Global ratings agency Moody’s has announced the affirmation of Reliance Industries Limited’s (RIL) long-term Baa2 credit rating, with a stable outlook. The rating reaffirms the conglomerate’s enduring financial strength and strategic execution across its oil-to-chemicals, digital services, and retail businesses.

Key Highlights:

Moody’s Baa2 rating for Reliance reflects its substantial size and dominant market presence across oil & gas, telecom, and retail sectors.

The stable outlook is based on Moody’s expectation that Reliance’s earnings will keep growing across most core segments, despite ongoing high investments.

RIL’s consolidated EBITDA is forecast to grow by nearly 14% to ₹1.7 trillion for FY2024, fueled by digital and retail business momentum.

Leverage ratios are expected to remain strong, with adjusted net debt/EBITDA at 1.5x–1.6x and retained cash flow/net debt at 40%–45%.

Moody’s highlighted the continued growth in Reliance Jio’s subscriber base (driven by 5G rollout and Jio Bharat phone) and rapidly expanding retail business as key drivers of future performance.

Rating remains capped at one notch above India's sovereign due to the company’s rising exposure to domestic economic trends.

RIL continues to invest in new energy as part of its net-zero by 2035 vision, diversifying its growth avenues.

Reliance’s stable Baa2 rating underscores investor confidence and positions the company strongly for continued expansion in India’s dynamic economy.

Sources: Moody's Investors Service, Economic Times, Business Standard