TEXT-S&P:Bharti Airtel rating unaffected by Qualcomm deal

May 25 - Standard & Poor's Ratings Services said today that its long-term corporate credit rating on Bharti Airtel Ltd. (BB+/Stable/--) is unaffected by the company's US$165 million investment for a 49% stake in Qualcomm India BWA, the India broadband wireless business of Qualcomm Inc. (not rated). We believe the current investment is small in size and that Bharti should be able to absorb the financial impact of paying for the remaining stake and of assuming debt at Qualcomm India BWA. We estimate the additional impact to be between US$900 million and US$1 billion. This is assuming that Bharti will gain full ownership of Qualcomm India BWA in phases by the end of 2014.

The investment in Qualcomm India BWA provides Bharti with access to spectrum for providing broadband wireless services in Kerala, Haryana, and the key markets of Mumbai and Delhi.