Moody’s perspective on the sale of Reliance Infratel
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Moody’s perspective on the sale of Reliance Infratel

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How Reliance Communications’ tower sale will boost its financial and liquidity profiles

By Nidhi Dhruv, Assistant Vice President,  Moody’s Investors Service

Reliance Communications Limited’s (RCOM, Ba3 with a stable ratings outlook) planned sale of its towers and related assets is credit positive because it will significantly improve the company’s financial profile.

Specifically, the proceeds will help substantially lower the company’s adjusted debt over the next 12 to 18 months and, in turn, its debt leverage and near-term refinancing risks, given its publicly stated intention to use the entire amount to lower debt.

The sale of the towers, which are owned by RCOM’s subsidiary, Reliance Infratel Limited (RITL, unrated), to two investment companies -- Tillman Global Holdings, LLC (unrated) and TPG Asia, Inc (unrated) – is expected to bring in $3.4


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