Fitch assessed that the rise in EBITDA contribution from RIL’s relatively stable consumer-facing businesses further strengthens cash flow stability.
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Dado Ruvic
Fitch Ratings has upgraded Reliance Industries Ltd’s (RIL) Long-Term Local-Currency Issuer Default Rating (IDR) to ‘A-’ from ‘BBB+’. The Outlook is Stable.
The rating upgrade is driven by the rating agency’s expectation that RIL will sustain positive free cash flow (FCF) generation on higher EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and lower capex intensity.
At the same time, the agency has affirmed RIL’s Long-Term Foreign-Currency IDR at ‘BBB’, which is one notch above India’s Country Ceiling of ‘BBB-’, with a Stable Outlook.
‘A’ ratings denote expectations of low default risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to adverse business or economic conditions than is the case for higher ratings.
‘BBB’ ratings indicate that expectations of default risk are currently low. The capacity for payment of financial commitments is considered adequate, but adverse business or economic conditions are more likely to impair this capacity.
Fitch assessed that the rise in EBITDA contribution from RIL’s relatively stable consumer-facing businesses further strengthens cash flow stability.
“The revised sensitivities reflect our view that RIL’s stronger operating profile, more resilient cash flow generation and improved financial flexibility support greater debt capacity than previously expected. We expect EBITDA net leverage to improve gradually over time, consistent with the stronger credit profile.
Referring to RIL’s Foreign-Currency IDR bring one notch above India’s Country Ceiling, the agency said this reflects its expectation that the company’s hard-currency (HC) external debt-service ratio will remain above 1.0x over the next 12 months, supported by sustained EBITDA generation from oil to chemical (O2C) exports, offshore operations and ample committed undrawn offshore facilities.
A company with a ratio above 1.0x for at least 12 months can be rated one notch above the Country Ceiling under Fitch Rating’s criteria.
Published on August 28, 2026
