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IDEA Vodafone Idea News Story

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Citi drops 'High Risk' tag on India's Vodafone Idea, raises target price

BUZZ-Citi drops 'High Risk' tag on India's Vodafone Idea, raises target price

** Citi Research changes rating on India's Vodafone Idea VODA.NS to "Buy" from "Buy/High Risk" and raises target price to 17 rupees from 14 rupees

** VODA last down 0.9% to 13.8 rupees

** Citi removes the risk rating after government's reassessment of telecom dues and a projected reduction in net debt

** Says a 47 billion rupee ($493.8 million) equity infusion by the Aditya Birla Group through warrant conversion should help VODA close its long-pending bank funding package

** CRISIL assigned an A-/Stable rating to VODA's proposed bank facilities - Citi

** Citi says these developments materially ease leverage and cash-flow concerns for VODA

** VODA up 28.5% YTD vs a 15% fall in larger rival Bharti Airtel BRTI.NS



($1 = 95.1725 Indian rupees)


(Reporting by Aleef Jahan in Bengaluru)

((aleefjahan.cs@thomsonreuters.com))

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