The agency said it expects Bharti to generate free operating cash flows of $1.5 billion-$2 billion annually despite acquiring spectrum in the February auction at a price that is significantly higher than its earlier estimate. "We raised the rating to reflect our expectation that Bharti will use its significant free operating cash flows and funds from strategic measures to reduce its leverage to a level that is in line with an intermediate financial risk profile," Standard & Poor's credit analyst Abhishek Dangra said. Dangra said the regulatory framework for telecom companies in India is improving and it will reduce the uncertainty and ambiguity that Bharti faced in the past few years.