UPL Limited — Credit Ratings, 22-05-2025: Credit Rating- Revision

S&P Global Ratings has affirmed UPL Corporation Limited’s 'BB' long-term credit rating and revised the outlook to stable from negative. This reflects improved credit metrics fueled by continued debt reduction through a US$350 million stake sale and a US$400 million rights issue, alongside a recovery in the global agrochemical sector. UPL’s funds from operations (FFO)-to-debt ratio is expected to improve to around 18% by fiscal 2026 and 20% by fiscal 2027, supported by stronger earnings and better working capital management. The stable outlook is likely to ease UPL’s borrowing costs and boost investor confidence, despite liquidity remaining constrained due to seasonal working capital fluctuations.