India Ratings and Research (Ind-Ra) has upgraded Reliance Infrastructure’s credit rating by three notches — from ‘IND D’ to ‘IND B / Stable / IND A4’ — on its non-fund based working capital limits, citing the company’s successful deleveraging to net zero debt and improved debt servicing record.The upgrade marks a significant improvement in the company’s credit profile after six years at the lowest rating level, Reliance Infra said in a regulatory filing, PTI reported.Ind-Ra noted that the rating boost follows Reliance Infra’s “substantial deleveraging efforts,” with the company now carrying no net debt from banks or financial institutions. It also cited timely servicing of standalone debt obligations over the three months ended June 30, 2025.Further strengthening its case, Reliance Infra completed one-time settlements with lenders of its subsidiaries, including the final payment by JR Toll Road Private Limited on June 23. These repayments were supported by capital infusion from warrants worth Rs 3,010 crore, of which Rs 750 crore was received in FY25 and Rs 225 crore in the first quarter of FY26.The agency also withdrew its earlier ratings on proposed fund-based and non-fund-based limits that were not availed by the company.Despite the rating improvement, Ind-Ra flagged ongoing risks. “The ratings continue to be constrained by the company’s weak financial risk profile, large contingent liabilities, and exposure to arbitration-related uncertainties across both standalone and stressed subsidiaries,” the agency said.The company’s engineering and construction (E&C) business is expected to recover in FY26, aided by fresh order flows in emerging sectors. It added that Reliance Infra plans to raise Rs 6,000 crore through foreign currency convertible bonds (FCCBs) and a qualified institutional placement (QIP) of equity, both approved by the board.