Reliance 3G Bond Risk Tumbles as Loans Fund Binge: India Credit

Reliance Communications Ltd.’s creditworthiness is improving at the fastest pace since June as it refinances $1.9 billion of debt and investors gain confidence in the ability of Indian cell phone companies to fund record spending.

Credit-default swaps on India’s second-largest mobile phone operator dropped 109 basis points last week to 421 basis points, the most since the five days ending June 18, according to prices quoted by CMA. Billionaire Anil Ambani’s company approached banks seeking dollar funding to cut costs, a person with direct knowledge of the plan said Oct. 11.