Larsen & Toubro Secures Moody's 'Baa1' Rating

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.

Shares of Larsen & Toubro Limited was last trading in BSE at Rs. 3991.60 as compared to the previous close of Rs. 4039.75. The total number of shares traded during the day was 80369 in over 6039 trades.

The stock hit an intraday high of Rs. 4044.50 and intraday low of 3975.55. The net turnover during the day was Rs. 321394238.00.

Source : Equity Bulls

Keywords

LarsenandToubro INE018A01030 LandT RatingUpdate