MTNL Bonds Rating Upgraded to BWR AAA (CE)/Stable by Brickwork Ratings
Mahanagar Telephone Nigam Limited's (MTNL) bonds worth ₹6500 crore have been upgraded to BWR AAA (CE) with a Stable outlook by Brickwork Ratings. This upgrade follows MTNL's improved adherence to its structured payment mechanism and timely coupon payments, supported by Government of India guarantees and asset monetization proceeds.
A credit rating upgrade to the highest possible rating (AAA) for a significant amount of bonds (₹6500 crore) has a high impact on the company's borrowing costs, investor confidence, and overall financial health.
The credit rating for MTNL's bonds has been upgraded, and the outlook has been changed to Stable, indicating a positive development for the company's financial standing and debt servicing capabilities.
Mahanagar Telephone Nigam Limited (MTNL) has received a significant upgrade in the credit rating for its bonds aggregating ₹6500 crore. M/s Brickwork Ratings India Pvt Limited (BWR) has upgraded the supported rating from BWR AA+ (CE) to BWR AAA (CE), removed it from “Rating Watch with Negative Implications”, and assigned a “Stable” outlook.
The rating upgrade reflects MTNL's consistent compliance with the trustee-monitored structured payment mechanism and timely coupon payments for the Government of India (GoI) guaranteed bonds. Previously, the rating was downgraded on October 8, 2024, due to the company's inability to fund the designated Trust & Retention Account (TRA) for scheduled coupon payments.
However, the GoI stepped in to fund the escrow account within the stipulated timelines, ensuring timely coupon payments. Since August 2026, MTNL has been able to make coupon payments without invoking the GoI guarantee, largely supported by proceeds from asset monetization. The company has successfully monetized assets, realizing ₹419.15 crore in FY26 and recently approved the sale of land in Mumbai for ₹891.53 crore, with proceeds expected to meet debt servicing and capex requirements.
The “Stable” outlook signifies BWR's expectation that MTNL will continue to adhere to the structured payment mechanism for the GoI-guaranteed bonds. The rating agency will continue to monitor the company's adherence to the mechanism and its debt servicing developments.
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Mahanagar Telephone Nigam Limited filed this with the NSE as a statutory disclosure, categorised under credit ratings. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Mahanagar Telephone Nigam Limited. Read the original for the full detail.