Bharti Airtel shares on Friday surged as much as 5.5 per cent after Standard and Poor's upgraded the telecom major's ratings.
After a positive opening, Airtel shares climbed 5.35 per cent to Rs 301.10 on the BSE. At the National Stock Exchange, it rose 5.47 per cent to Rs 301.45. The benchmark Sensex gained 1.6 per cent to a new intra-day high of 21,866.51.
Standard and Poor's on Thursday upgraded Airtel to 'BBB-' on account of reduced debt and an improved regulatory environment.
The agency said that "it had raised its long-term corporate credit rating on Bharti Airtel Ltd to 'BBB-' from 'BB+'. The outlook is stable."
S&P also raised the long-term issue rating on the USD 1.5 billion raised by the company through senior unsecured notes and the 1 billion euro bonds backed by the company's guaranty to 'BBB-' from 'BB+'.
A 'BBB-' rating is considered the lowest investment grade by market participants and a BB+ rating is considered the highest speculative grade, according to S&P's website. SUM JC