S&P rates Reliance notes BBB

Standard & Poor's said it assigned a BBB long-term issue rating to the proposed issues of dollar-denominated senior unsecured notes by Reliance Holding USA Inc.

Reliance Industries Ltd., which indirectly owns all of Reliance Holding, will fully and unconditionally guarantee the notes.

The proceeds will fund ongoing capital expenditure in the shale gas business and refinance short-term debt incurred for that business, S&P said.

The ratings reflect the company's large scale, integrated and efficient oil refining and petrochemical operations and good business diversity, the agency said.

In addition, the company has stable cash flows and low leverage with strong liquidity, S&P said.

Weaknesses that offset these strengths include the company's vulnerability to the cyclical nature of its industries and commodity prices, along with it exposure to India's country and regulatory risks.

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