Since the day Bharti and Zain have announced news of entering into exclusive talks for Bharti acquiring Zain's assets for $10.7 billion there have not been positive vibes in the Indian markets. Rating firms Standard & Poor's and its Indian partner, Crisil have given a negative rating to the deal, to add to the investor woes. They have rated Bharti Airtel's long term bank facilities and debt programme with a rating of 'rating watch with negative implications '.

The rating firm believes that the borrowings for Bharti would increase and hence the risk would also go up and the negative rating was given keeping in account the fact that the deal will be hugely funded by debt and hence will have adverse effects on the company in the short run.

Currently Bharti's debt to equity ratio is a low 0.15 which is expected to go above 1 if the deal happens. Zain currently has lower profitability as compared to Bharti, thus Bharti's business risk would increase owing to macroeconomic reasons.

P1+ is the highest possible rating, indicating maximum safety." The rating on Bharti Airtel's commercial paper programme and short-term non-fund-based bank limits has been reaffirmed at 'P1+'," Crisil said.