🧨 ITI Limited Rated ‘BB+’ with a Stiff Warning: Telecom PSU’s ₹28,000 Cr Lifeline Hangs by a (Govt) Thread

By Prashant Marathe | 23 May 2025 | EduInvesting

📌 At a Glance

🆕 Credit Rating Assigned:
IND BB+/Stable/IND A4+ by India Ratings (Fitch Group) — Translation: 🚨 Meh

💳 Total Facilities Rated:
₹48,517.9 Cr in bank working capital limits
(Fund-based: ₹14,500 Cr | Non-fund-based: ₹34,017 Cr)

🏛️ Parent: Government of India (owns 90%)

📉 EBITDA (FY24): –₹319 Cr
📊 Net leverage: 36x
🏚️ Delayed dues: ₹222 Cr unpaid statutory dues

💥 Past default history (now cleared) and auditor red flags

🧾 What the Rating Means

BB+ = speculative-grade, borderline junk
A4+ = high risk for short-term liquidity

India Ratings Summary:

• Financials: Weak (recurring EBITDA losses)
• Governance: Weaker (auditor red flags, LODR non-compliance)
• Liquidity: Stretched
• Hope?: Yes, if GoI keeps funding the patient on ICU

🧨 The Good, The Bad, and The Ugly