India Ratings and Research has upgraded Reliance Infrastructure Ltd (RInfra) by three notches—from IND D to IND B/Stable/A4—for its non-fund based working capital facilities. This significant upgrade reflects substantial progress in RInfra’s financial health and turnaround strategy.
Key Highlights:
- Debt Reduction: Reliance Infrastructure reduced its standalone debt from over ₹3,060 crore in FY24 to just ₹470 crore by March 2025. The company has now reached a near-zero net debt position with banks.
- Timely Debt Servicing and Capital Infusion: The upgrade is supported by consistent debt servicing over three consecutive months and a capital infusion through ₹3,010 crore worth of warrants—₹750 crore in FY25 and ₹225 crore in Q1 FY26.
- Subsidiary Debt Clearance: RInfra also resolved guaranteed debt obligations of subsidiaries, including a ₹273 crore payment related to JR Toll Road.
- Market Reaction: Following the upgrade announcement, RInfra’s share price rose by nearly 4%, reaching an intraday high of ₹392 on the NSE.
Credit Watch and Outlook:
While the rating upgrade marks a turnaround, India Ratings continues to monitor certain risks, including:
- Exposure to contingent liabilities and ongoing arbitration claims
- Weak operational performance in fully fund-based facilities
- Financial linkages to group entities under stress
Nonetheless, the rating agency cited that sustained deleveraging, healthy order inflow, and resolution of outstanding liabilities could lead to further upgrades.
Source (full link):
https://www.businesstoday.in/latest/corporate/story/reliance-infrastructure-credit-rating-upgrade-debt-reduction-turnaround-484342-2025-07-11
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