Home / Business and Economy / UPL Corp Rating Holds Amid Major Business Shake-Up
UPL Corp Rating Holds Amid Major Business Shake-Up
21 Feb
Summary
- Fitch Ratings affirmed UPL Corporation's credit rating at 'BB/Stable'.
- Reorganization will create the world's second-largest pure-play crop protection platform.
- The restructuring is expected to be completed within 12-15 months.
Fitch Ratings has maintained UPL Corporation's credit rating at 'BB/Stable' despite a significant proposed group reorganization. The agency stated that this restructuring will not adversely affect the company's creditworthiness or its consolidated rating framework.
The proposed reorganisation involves transferring UPL's Indian and global crop protection businesses to a new listed entity, UPL Global Sustainable Agrisolutions. This move aims to simplify the group's structure and unlock shareholder value, creating the world's second-largest listed pure-play crop protection platform. UPL is expected to retain approximately two-thirds majority stake post-reorganisation.
Fitch anticipates that UPL will maintain cash fungibility across the group and continue centralized management of treasury, strategy, capital allocation, and governance. This continuity will be supported by the ongoing majority ownership and common board members. The transaction is expected to be completed within 12 to 15 months, subject to regulatory approvals.
