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Kolkata: Vodafone Idea 's credit rating has improved a notch to BBB- from the earlier BB+, which is set to boost the telco's prospects of concluding its pending ₹25,000 crore debt raise, company executives and ratings experts said. On Friday, ratings agency ICRA assigned an improved BBB- credit rating to Vi's long-term fund facilities, compared to the previous BB+ assigned by CARE Ratings in June 2024. "With the company now coming back into the investment grade rating, which is the requirement for the banks to provide funding, the debt funding discussions should now progress in the right direction," a Vi spokesperson said in a written response to ET.
Advt A senior ratings industry executive said Vi's latest BBB- credit rating by ICRA is "one-level higher" than the earlier BB+ by CARE, and is also an investment grade rating that should work better with potential lenders. He added that ratings, typically, can be compared between two agencies as the ratings scales are standardised across industry. Vi shares closed 1.
1% higher at ₹7.2 on Friday on the BSE. The improved credit rating of the telecom JV between UK's Vodafone and India's Aditya Birla Group comes on the heels of the government's debt conversion.
Raising debt from banks is critical for Vi to execute its ₹50,000-55,000 crore capex plans over the next three years for expanding 4G operations in priority circles and rolling out 5G in key cities. ET Bureau Published On Apr 12, 2025 at 07:15 AM IST Telegram Facebook Copy Link Be the first one to comment. Comment Now COMMENTS Comment Now Read Comment (1) All Comments By commenting, you agree to the Prohibited Content Policy Post By commenting, you agree to the Prohibited Content Policy Post Find this Comment Offensive? Choose your reason below and click on the submit button.
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