New Delhi, Jan 28 (PTI) S&P Global Ratings on Wednesday upgraded Biocon Biologics ratings with a stable outlook.
The company has reduced its outstanding structured debt liabilities, it said in a statement.
The ratings upgrade comes on the heels of Biocon simplifying its capital structure.
The USD 1 billion compulsorily convertible preference shares to Viatris has now been removed through a mix of equity share swaps and cash consideration, it added.
Biocon funded the cash payout through fresh equity of about USD 460 million that it raised earlier this month.
This follows the company’s first equity issuance in June 2025 when it raised about USD 520 million to provide an exit to private credit investors.
“We estimate Biocon’s S&P Global Ratings adjusted debt to decline to about Rs 115 billion at the end of fiscal 2026, from Rs 248 billion in fiscal 2025. This is because we considered the USD 1 billion CCPS and the put-option liabilities as debt-like in our financial ratios,” S&P Global Ratings stated.
Pro forma the transaction, Biocon’s capital structure will only comprise USD 800 million senior secured notes, term loans, and working capital borrowing, it said.
“Its ratio of FFO to debt will improve to about 22 per cent at the end of fiscal 2026 from less than 10 per cent in the last year. We note that Biocon’s capital structure comprises primarily US dollar-denominated borrowing. However, the foreign currency risk is partly mitigated given it generates about 45 per cent of its revenues from US markets,” it added.
Biocon’s revenue growth will be led by its biosimilars business, which we estimate will grow about 15 per cent in FY27.
“We also expect the company to launch at least one new product, Denosumab, over this period. BBL currently has 10 commercialised biosimilars and a pipeline of 10 new products,” it added. PTI MSS TRB
