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Mumbai, Dec 29: Standard&Poor's (S&P) Ratings Services today said it affirmed its long-term foreign and local currency ratings on Reliance Industries Ltd (RIL) at 'BBB' and the the outlook is stable.

''The affirmation reflects RIL's dominant competitive position, the relatively stable medium term prospects for its core refining and petrochemical businesses, and an overall moderate financial profile of the company,'' said S&P's credit analyst Anshukant Taneja in a release issued today.

The ratings factor in the likelihood of timely completion of its ongoing projects, specifically the new refinery at Jamnagar in Gujarat, it added.

The ratings are also underpinned by the expectation that RIL would pursue its noncore businesses, specifically investments in the retail sector, in a modular phased-out manner, as an accelerated investment strategy can weigh on the company's overall credit profile.

''The ratings remain constrained by RIL's exposure to highly cyclical industries, large capital commitments in its refining, exploration and production businesses, and uncertainties in developing its reportedly large gas reserves,'' added Mr. Taneja.

Further, S&P's views RIL's Rs 61,700 crore (US.5 billion) capital expenditure plan with caution, given potential softening in the petrochemical cycle, reduced demand for refined petroleum products, and uncertainties related to the company's upstream gas business.

Lower-than-expected cash flows for funding a part of the capital expenditure could mean higher borrowings, which would weaken the company's credit protection measures.

''RIL's current financial position, strong liquidity, and high access to financial resources do mitigate some of these risks,'' noted Mr Taneja.

RIL is the country's largest private sector company and its two main lines of business are oil refining and petrochemicals production, accounting for about 67 per cent and 31 per cent of revenue for the fiscal year ended March 31 2006, respectively.

UNI