Mumbai: Larsen & Toubro Limited (L&T) has secured a ‘Baa1’ long term issuer rating with a ‘Stable’ outlook from Moody’s Ratings, reinforcing the Group’s robust credit profile and financial resilience.
The ‘Baa1’ rating signifies a quality investment-grade credit profile, reflecting strong capacity to meet financial commitments and a low level of credit risk. It also underscores L&T’s prudent financial management and consistent operational performance.
The ‘Stable’ outlook reflects expectations that L&T and its core international subsidiaries will maintain strict fiscal discipline, comfortable leverage levels and healthy operating margins as high-margin engineering services and large-scale EPC projects in West Asia continue to scale.
Key Elements of Moody’s Rating Evaluation
Moody’s comprehensive credit profile balances L&T’s structural operational strengths against inherent macro-level industry challenges:
Core Credit Strengths:
- Diversified conglomerate with deep track record.
- Dominant market position & revenue visibility
- Exemplary corporate governance
- Favourable industry prospects in the domestic and international infrastructure landscape
Notably, this premium rating stands two notches above India’s sovereign rating of ‘Baa3’, positioning L&T among an exclusive group of Indian multinational corporates evaluated stronger than the country’s sovereign rating.
Moody’s, the global ratings major, has also assigned a matching ‘Baa1’ rating to L&T Hydrocarbon Saudi Company (a subsidiary of L&T), reflecting the business vertical’s tight operational integration with the parent Company and the strategic importance of Larsen & Toubro’s West Asia operations.
