Reliance Infrastructure's Credit Rating Soars Amid Deleveraging Success

Reliance Infrastructure's credit rating was upgraded due to substantial deleveraging efforts, resulting in net zero debt. The company improved its credit profile significantly over six years, issued warrants to ease liquidity pressures, and is addressing ongoing financial risks and legal proceedings. Its E&C segment shows promising revenue prospects.

Rating agency Ind-Ra has upgraded Reliance Infrastructure's credit rating, citing the company's considerable deleveraging success which has brought its net debt to zero.

India Ratings and Research elevated the company's rating from 'IND D' to 'IND B / Stable / IND A4', marking a three-notch improvement in its credit profile after a six-year stint at the IND D level.

The upgrade is also influenced by Reliance Infra's timely debt servicing and one-time settlements with subsidiary lenders, alongside a significant capital infusion, yet ongoing financial challenges and arbitration proceedings remain key concerns.

(With inputs from agencies.)