Moody's says sale of towers in Nigeria credit positive for Bharti Airtel

Moody's Investors Service has said Bharti Airtel's decision to sell approximately 4,800 of its telecommunications towers in Nigeria is credit positive.

The Sunil Bharti Mittal-led company sold the towers to US based American Towers Company for about $1.05 billion in a move to pare debt.

"This transaction is credit positive as it will allow Bharti to pay down balance sheet debt, reduce its interest cost, and reduce total capital expenditure on passive infrastructure investments," Moody's Vice President and Senior Analyst Annalisa DiChiara said in a statement on Friday.

Bharti Airtel's debt at the end of the September quarter was Rs 62,215.8 crore.

Shares of the company were on Friday trading 0.56 per cent lower at Rs 383.70 on the Bombay Stock Exchange.