Reliance Infrastructure's Credit Rating Upgraded

India Ratings and Research (Ind-Ra) has significantly upgraded Reliance Infrastructure's credit rating by three notches, from 'IND D' to 'IND B / Stable / IND A4', marking a pivotal moment in the company's financial health.

Behind the Upgrade

This upgrade is a testament to Reliance Infra's successful deleveraging efforts, achieving a net zero debt status and improving its debt servicing capabilities. The company has also completed one-time settlements with lenders, supported by a significant capital infusion.

Future Prospects and Challenges

Despite the positive outlook, Ind-Ra highlights ongoing risks, including a weak financial risk profile and large contingent liabilities. However, with plans to raise Rs 6,000 crore and a recovering engineering and construction business, Reliance Infra is poised for growth.