UPL Limited has informed the Exchange about Credit Rating- Revision
UPL · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Fitch Ratings has revised the credit rating outlook on UPL Corporation Limited (UPL Corp), the wholly owned subsidiary of UPL Limited, from 'Negative' to 'Stable', while affirming the Long-Term Issuer Default Rating (IDR) at 'BB'. Senior unsecured rating and notes ratings were also affirmed at 'BB'. The outlook revision is driven by an improvement in UPL's financial profile, with FY25 EBITDA leverage falling sharply to 5.2x and expected to improve to 4.1x in FY26. Deleveraging in FY25 was supported by healthy EBITDA recovery, a shorter working-capital cycle, USD350 million from the sale of a stake in the seeds business, and around USD200 million from a rights issue. UPL also redeemed USD400 million (INR34 billion) of subordinated perpetual capital securities in May 2025.
Positive sentiment for shareholders — the outlook upgrade from Negative to Stable signals reduced near-term downgrade risk and reflects improving leverage and cash flows. However, the rating remains in speculative (junk/high-yield) territory at 'BB', and a further upgrade would require EBITDA leverage to fall below 3.5x with sustained positive free cash flow.