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.