S&P Global Ratings has upgraded IREDA’s long-term international credit rating to ‘BBB’ from ‘BBB-‘, with a stable outlook. The short-term rating has been revised to ‘A-2’ from ‘A-3’. This upgrade aligns IREDA’s international credit rating with India’s sovereign credit rating, highlighting its strategic importance to the renewable energy sector.
Credit Rating Improvement
Indian Renewable Energy Development Agency Ltd. (IREDA) announced on October 28, 2025, that S&P Global Ratings has upgraded its long-term issuer credit rating. The agency’s rating has moved from ‘BBB-‘ to ‘BBB’, accompanied by a stable outlook. Additionally, the short-term rating has been revised from ‘A-3’ to ‘A-2’.
Factors Behind the Upgrade
S&P Global Ratings considered IREDA’s strong asset quality, robust capitalization, and solid liquidity profile as key drivers for the upgrade. The improved rating is anticipated to boost IREDA’s funding capabilities, lower its cost of capital, and enhance investor confidence in both equity and debt markets.
Strategic Alignment
This upgrade aligns IREDA’s international credit rating with India’s sovereign credit rating, which underscores the company’s strategic role in the nation’s renewable energy mission. The enhanced rating is expected to reinforce IREDA’s position as a premier green financing institution in India.
Management Commentary
Shri Pradip Kumar Das, Chairman & Managing Director of IREDA, stated that the upgrade validates IREDA’s financial strength and highlights its critical role in India’s renewable energy transition. He also noted that the alignment with the sovereign rating will enable IREDA to access capital more competitively and deepen investor confidence in its long-term strategy.
Source: BSE
