Vodafone Idea’s prospects for securing its long-awaited ₹25,000 crore debt raise received a major boost after Care Ratings upgraded its credit rating to BBB- from BB+. The upgrade brings the telco back to investment grade, a key requirement for banks to extend large-scale funding.
In a regulatory filing on Monday, Vi confirmed the rating revision, stating “Care Ratings Ltd (CARE) has upgraded its rating assigned to the Long-Term and Short-Term Bank Facilities as per the rating letter issued to the company today.”
While the announcement came after market hours, Vi’s shares surged 10.25% to ₹8.07 on the BSE by close of trade. Earlier this month, ICRA Ltd also upgraded Vi’s long-term fund facilities to BBB-, further reinforcing the company’s improving financial outlook.
These upgrades come shortly after the government’s debt-to-equity conversion, which helped strengthen Vi’s balance sheet. The improved ratings are expected to accelerate bank funding discussions, which are critical for the telco’s planned ₹50,000–₹55,000 crore capital expenditure over the next three years.
Vi plans to invest heavily in expanding its 4G footprint in priority markets and launching 5G services in key urban areas, as it works to close the coverage gap with rivals Reliance Jio and Bharti Airtel and reduce customer churn.
While Vi has already raised ₹26,000 crore via equity, the remaining ₹25,000 crore debt funding is essential to execute its network expansion strategy. Progress on bank financing had previously stalled due to uncertainty over AGR liabilities, but the recent ratings upgrades are now expected to move talks forward.
