S&P Global Ratings has revised the credit rating outlook for Biocon Biologics to Positive, acknowledging the company’s progress in debt reduction. This decision reflects S&P’s view that Biocon’s debt will decline significantly by March 2026, driven by its plans to use fresh equity issuance of about INR 45 billion to fund cash considerations. The positive outlook underscores confidence in Biocon’s financial strategy and commitment to deleveraging.
S&P Recognizes Debt Reduction Efforts
S&P Global Ratings has assigned a Positive outlook to Biocon Biologics’ credit rating, recognizing the company’s accelerated progress in reducing debt. The ‘BB’ long-term issuer credit rating on Biocon Biologics and the ‘BB’ issue rating on the senior secured notes issued by the Company have been placed on Positive outlook as of December 10, 2025. S&P’s decision highlights Biocon’s positive steps toward debt retirement.
Key Factors Driving the Outlook Revision
The positive outlook is based on Biocon’s plan to become a wholly-owned subsidiary of Biocon and its strategy to reduce debt through equity infusion. S&P anticipates that Biocon’s debt will substantially decrease by March 2026. The company plans to fund its cash consideration to Viatris entirely through fresh equity issuance of approximately INR 45 billion.
Improved Capital Structure Anticipated
The transaction is expected to eliminate instruments with put options, previously viewed as debt-like. By March 31, 2026, Biocon is expected to have repaid other optionally convertible debentures and redeemable nonconvertible debentures. Post-transaction, Biocon’s capital structure will primarily consist of senior secured notes, bilateral loans, and working capital borrowings. S&P estimates that Biocon’s Ratings-adjusted debt will decrease to around INR 120 billion by the end of March 2026, from INR 248 billion as of March 2025.
About Biocon Biologics
Biocon Biologics Limited, a subsidiary of Biocon Limited, is dedicated to transforming healthcare by providing affordable access to high-quality biosimilars. With a presence in over 120 countries, the company leverages advanced science and manufacturing capabilities to lower the costs of biological therapeutics. Biocon Biologics has commercialized 10 biosimilars and has a pipeline of 20+ biosimilar assets.
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