Care Ratings has upgraded Vodafone Idea's (Vi) credit rating to BBB- from BB+. According to media reports, the move is expected to bolster Vi's efforts to secure its long-pending Rs 25,000-crore debt funding from banks. In a regulatory filing on Monday, Vodafone Idea said, "Care Ratings Limited (CARE), has upgraded its rating assigned to the Long-Term Bank Facilities and Short-Term Bank Facilities as per the rating letter issued to the Company today (i.e. on April 21, 2025)."
Also Read: Vodafone Idea Shares Are a High-Risk Buy With a Target Price of Rs 12: Citi
Vi Credit Rating Upgrade
Long-Term Bank Facilities have been upgraded to BBB- from BB+, while Short-Term Bank Facilities have been upgraded to A3 from A4+.
This development follows a similar upgrade earlier this month by ICRA Ltd, which also assigned a BBB- rating to Vi’s long-term fund-based facilities. The return to investment grade—a key criterion for banks to extend credit—is expected to accelerate debt funding discussions, according to reports.
Also Read: Macquarie Downgrades Vodafone Idea on Fresh Govt Equity Infusion: Report
The telco had then reportedly said that Vi's return to an investment grade rating, which is a requirement for banks to provide funding, would result in the debt funding discussions progressing in the right direction.
The improved credit profile comes on the back of the government's conversion of dues into equity, which provided much-needed clarity around the telco's adjusted gross revenue (AGR) liabilities—a major hurdle in previous funding talks.
Also Read: Are Vodafone Idea’s Cheap Plans and Top 4G Network Paying Off? Here’s What Subscriber Stats Show
Vodafone Idea Capex Plans
As per the recent investor presentation, Vi plans to invest Rs 50,000–Rs 55,000 crore over the next three years to expand 4G services in priority circles and roll out 5G in key cities. The company has already raised Rs 26,000 crore in equity, but the bulk of its capital expenditure depends on securing the pending bank loans.
Despite Best 4G Network Tag, Subscriber Losses Persist
However, Vi's 4G network is already rated the best among Indian telcos—including Reliance Jio and Bharti Airtel—according to an OpenSignal report. Yet, subscriber losses continue. As per the recent TRAI Telecom Subscription Data as of 31 January 2025, Vodafone Idea lost 1.34 million wireless subscribers, bringing its subscriber base down to 205.92 million in January 2025 from 207.26 million in December 2024.
Lost Subscribers in All Except 3 Circles
Vodafone Idea lost wireless subscribers in all circles except Bihar (46,954 gained), Mumbai (1,373 gained), and Odisha (6,424 gained). Vi launched its Half Day Unlimited 4G Plans in December, but these free data offerings appear ineffective in halting subscriber loss.
Also Read: Financially Stronger Vodafone Idea Will Become a More Competitive Player, Says Ericsson CEO: Report
OpenSignal Report Recognised by Ericsson
If Vi's 4G network—recognised by players like OpenSignal, endorsed by network vendors such as Ericsson, and supported by offerings like Half Day and Nonstop Unlimited 4G plans—is unable to retain users, then it's unclear what will. According to a recent report, Borje Ekholm, President and CEO of Ericsson, said a financially stronger Vodafone Idea would become a more competitive player.
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