The rating outlook distribution has been mostly stable over the past three years. We expect limited rating changes over the next 12 months, with all of the 17 publicly rated Foreign-Currency Issuer Default Ratings on stable outlook as of end-November 2022. However, four of the rated companies have low rating headroom, suggesting limited capacity to take on more debt without incremental operating cash flow. Our view on Bharti Airtel Limited's (Bharti, BBB-/Stable) underlying credit quality is currently 'BBB-'/Positive, which indicates the Foreign-Currency IDR Outlook could be revised to Positive if India's Country Ceiling were to be raised to 'BBB'. The Indian telcos sector may be heading towards a private-sector duopoly if Vodafone Idea continues to weaken.