New Delhi: Moody’s Investor Service has said that private sector telecom company Bharti Airtel has the financial capacity to pay the statutory dues of five billion dollars.
Earlier this month, the Supreme Court had asked the telecom companies to comply with its decision of October 24, 2019. The apex court in its judgment had justified the definition of adjusted gross revenue (AGR) of the Department of Telecommunications.
Moody’s said on Wednesday that AGR’s previous outstanding dues to Bharti Airtel amounted to Rs 35,300 crore, or $ 5 billion. However, the telecom company is self-assessing to get its final figures.
Moody’s said that the cash payment of Rs 35,300 crore would not significantly impact Bharti Airtel’s loan quality. If the company has to pay only Rs 25,200 crore, including the principal and interest, then its position in the current rating will be satisfactory.
Airtel has to make full payment of the previous statutory dues by 17 March. The rating agency said the company’s recent capital raising activities would provide it with additional cash to pay AGR.
