Vodafone Idea Secures Credit Rating Upgrade From Care Amid Declining Subscriber Base

Vodafone Idea Secures Credit Rating Upgrade From Care Amid Declining Subscriber Base
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).”

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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.

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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.

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