Moody’s Investors Service said that it continues to support Bharti Airtel’s Baa3 rating and stable outlook post the telco’s operating performance for the fourth quarter of the financial year ended 31 March 2016.

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“The strong momentum in Bharti’s Indian businesses continues to support its Baa3 ratings. Moreover, as tower asset proceeds — totaling $1.8 billion received to date – will be used for debt reduction, its credit metrics will remain in line with our expectations,” Annalisa Di Chiara, a Moody’s Vice President and Senior Credit Officer, said in a statement.

Moody’s estimates Bharti’s adjusted, consolidated debt/EBITDA, including deferred spectrum payments as debt, was around 3.1x for the year ended 31 March 2016, compare to 2.8x last year reports Economic Times.

“Even when considering the net effect of Bharti’s announced spectrum acquisitions — Videocon Telecommunications and Aircel– with its announced sale of operations in Burkina Faso and Sierra Leone to Orange (Baa1 stable) and tower asset sales in Tanzania, we estimate pro-forma leverage for the year ended 31 March 2016 was also around 3.1x,” the ratings firm said.

The firm said that the stable outlook reflects its expectation of strong cash flow generation from its Indian operations and the application of cash proceeds from its asset sales to reduce debt on an absolute and relative basis.

“Downward pressure could arise should competition intensify in any of its key markets, but particularly for the Indian wireless business, such that its key operations and/or subsidiaries report materially declining margins, or if Bharti fails to continue with its deleveraging strategy,” Moody’s said.