Biocon Biologics Secures BB+ Rating Upgrade from S&P on Improved Financial Metrics
New Delhi: S&P Global Ratings has upgraded the long-term issuer credit rating of Biocon Biologics Limited to 'BB+' from 'BB' and revised the outlook to Stable, citing a strengthened balance sheet, simplified capital structure and improving earnings outlook.
The rating agency has also upgraded the rating on the senior secured notes issued by Biocon Biologics Global PLC to ‘BB+’ and removed the ratings from CreditWatch, where they were placed with positive implications in December 2025.
The upgrade follows Biocon’s recent equity issuance to settle $1 billion of compulsorily convertible preference shares (CCPS) issued to Viatris Inc. The CCPS were removed through a combination of equity share swaps and cash consideration, with the cash payout funded by a fresh equity raise of around $460 million completed earlier this month.
In its rating rationale, S&P said Biocon has significantly simplified its capital structure by reducing structured debt liabilities, leading to a sharp decline in adjusted debt. The agency estimates Biocon’s adjusted debt to fall to around ₹115 billion by the end of FY26, from ₹248 billion in FY25. As a result, the company’s funds from operations (FFO) to debt ratio is expected to improve to about 22 percent in FY26 and further to around 30 percent by FY27.
S&P noted that new product launches and favourable industry trends will support Biocon’s earnings growth over the next 12–24 months, particularly in biosimilars, GLP-1 therapies, oncology and rare disease treatments. The agency expects Biocon’s biosimilars business to grow by around 15 percent in FY27, driven by scale-up and market share gains of newer products such as bStelara and Aflibercept, alongside the planned launch of Denosumab.
The stable outlook reflects S&P’s expectation that steady earnings growth, disciplined financial policy and improving credit metrics will help Biocon maintain its enhanced financial position. The agency also highlighted management’s commitment to restoring leverage levels to those seen prior to the $3.3 billion acquisition of Viatris’ biosimilars business in November 2022, which had significantly increased debt ratios.
S&P cautioned that downside risks could arise if operating performance weakens due to regulatory challenges, delayed product launches or margin erosion, or if debt increases due to aggressive acquisitions or shareholder payouts. Conversely, further rating upside could be considered if Biocon demonstrates sustained market share gains, successful execution of new launches in the US and Europe, and continued improvement in leverage metrics.
Biocon Biologics, a wholly owned subsidiary of Biocon Limited, is a fully integrated global biosimilars company with operations across over 120 countries. The company currently has 10 commercialised biosimilars and a robust pipeline spanning diabetology, oncology, immunology and other chronic disease segments.
