S&P Global Raises Bharti Airtel’s Rating to BBB+ from BBB-
Global financial institution, S&P Global, accredits and upgrades Bharti Airtel’s ratings from BBB to BBB+, projecting it as a “stable, rapidly growing” company for the coming two years. Airtel's expansion in India as well as African markets, resulted in strong cash flow and higher earnings.
S&P Global has upgraded the long-term issuer credit rating for the telecom behemoth, Bharti Airtel Limited, from ‘BBB’ to ‘BBB+’. Alongside the issuer rating, the American corporation also upgraded the rating on the company’s senior unsecured debt to ‘BBB+’. This upgrade in rating positions the telecom giant among the stable and rapidly growing companies for the next two years, attracting global investors.
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Key Highlights
Bharti Airtel gets an S&P Global rating upgrade from BBB to BBB+.
Bharti Airtel gets a global stamp as a “stable growing company” for the next two years.
As per the S&P Global analysis, the major contribution to Bharti Airtel’s growth goes towards expansion in Indian and African markets.
Bharti Airtel Earns BBB+ Credit Rating Upgrade from S&P Global
Bharti Airtels one of the top-three biggest telecom operations in the world and in India. Getting such a massive credit upgrade for such a corporation comes up as a major milestone, as the company gets a global stamp of approval, giving investors confidence to look at Bharti Airtel as a stable, rapidly growing, and debt-responsible company.
S&P Global has recognized Bharti Airtel as a “stable outlook” company, which means that they predict a strong financial health to continue for the next 12-24 months from now.
S&P Global Highlights Bharti Airtel’s Key Growth Factors and Potential Risks
Bharti Airtel’s current focus on twin growing markets, India and Africa, has changed the financials completely.
The Twin Growth Engines: India and Africa
According to S&P Global analysis, Bharti Airtel’s Indian subscriber base is expected to see growth by 3% to 4% over the next year.
It was also found that the users subscribed to Airtel are spending more money on “higher-tier data plans” because of the growing Average Revenue per unit (ARPU) so far. For the coming year, S&P Global expects growth by 5% to 7%. It was also noted that Bharti Airtel’s increasing market share compared to its competitors. Apart from India, Bharti Airtel has a strong base in 14 African countries, which are performing even better, surpassing the expected number!
As per S&P Global, Bharti Airtel has massive growth in the African customer base for the current year, and by March 2028, S&P Global is expecting staggering 9% to 11% growth. The analysis also shares that Africa might see an increase in ARPU by 5% to 7% annaully, resulting in customers possibly opting for “higher-tier data plan,” resulting in increasing the cash flow to the company.
Bharti Airtel’s African performance outpaces India’s earnings growth too. S&P Global expects that earnings from Africa will bring in 25% to 27% of Airtel’s total core earnings (EBITDA), up from previous estimates of 20%
Strong Earnings and Balance Sheet Discipline
S&P Global also pointed out Airtel’s strong earnings with better debt management. As per the estimates, Bharti Airtel sees a massive a 28% jump in core earnings (EBITDA) for the fiscal year 2026 and forecasts that Bharti Airtel’s EBITDA will rise by 8% to 10% annually for the next two years.
S&P tracks a safety metric called the “Funds From Operations (FFO) to Debt” ratio, which shows a company’s ability to cover its total debt commitments with the cash generated from its core operations. For Bharti Airtel, this stood at 43.8%, translating to Airtel’s strong cash flow with lower debt and higher earnings.
The estimates say that this project is expected to climb to up to 50-52% by 2027 and may even cross 60% by 2028.
S&P Global also pointed out that Bharti Airtel is not only earning through its operations and paying off its debt, but also it’s focusing on funding its future growth, where it was noted that Airtel’s rising cash flow can easily cover the major future expansion expenses.
A few of the future projects include building its business data center (Nxtra Data Ltd.), cloud computing services, and investing in African network expansion. Bharti Airtel has also rewarded higher dividend payout to its investors.
Potential Risks S&P is Watching
Bharti Airtel holds a strong position in the market today; however, S&P Global issued a few internal and external factors they will be monitoring, which include the company’s debt, which stands at INR 465 billion, translating to around Rs 46,700 Crore.
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FAQs
What is the rating upgrade of Bharti Airtel?
Bharti Airtel gets a rating upgrade from its current position of BBB- to BBB+ by S&P Global, showing the strong cash flow of the company.
What is the rank of Bharti Airtel in the world?
Bharti Airtel is ranked as the second-largest telecom operator in the entire world with a global subscriber base exceeding 650 million customers, including Indian and African markets.
How much is the current debt for Bharti Airtel?
As per the latest filings, Bharti Airtel’s current debt stands at INR 465 billion, translating to around Rs 46,700 Crore.
What are the future expansion plans for Bharti Airtel?
With a strong customer base and a healthy cash flow, Bharti Airtel is not only paying off its debt but also investing in its future expansion projects, including building a business data center, investing in cloud computing services, and investing in African network expansion.
What are the potential risk factors pointed out by S&P Global?
S&P Global has pointed out Airtel’s current debt standing of Rs. 46,700 Crore, for which the telecom company relies on the dividend to pay it off. However, looking at the strong financial structure and future growth, Airtel is still set as a “stable growing company”
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