Feb 1: BlackSoil Capital, one of India’s leading alternative credit platforms providing flexible financing solutions to growth-stage businesses, has received an upgrade in its credit ratings from ICRA Limited.
ICRA has upgraded BlackSoil’s long-term rating to [ICRA]A- (Stable) from [ICRA]BBB+ (Positive), and its short-term rating to [ICRA]A2+ from [ICRA]A2. In addition, ICRA has enhanced the rated amount for the company’s facilities.
The rating upgrade reflects BlackSoil’s strengthening credit profile, supported by improved capitalisation, stable asset quality, disciplined risk management practices, and a resilient funding and liquidity position, as outlined in ICRA’s rating rationale.
Key Details of the Rating Upgrade
Enhanced Credit Profile
- The long-term rating upgrade reflects BlackSoil’s improved capitalisation, calibrated portfolio growth, and consistent financial performance.
- Stable asset quality trends and disciplined underwriting across cycles have contributed to the strengthening of the company’s credit profile.
- The upgrade in the short-term rating highlights BlackSoil’s comfortable liquidity position and improving funding profile.
Instrument-wise Rating Actions
- Long-term/Short-term bank lines – Fund-based: Upgraded to [ICRA]A- (Stable)/[ICRA]A2+; upgraded from [ICRA]BBB+ (Positive)/[ICRA]A2; rated amount enhanced to ₹955 crore from ₹650 crore.
- Commercial Paper Programme: Upgraded to [ICRA]A2+ from [ICRA]A2; rated amount maintained at ₹50 crore.
- Total Rated Amount: Enhanced to ₹1,005 crore from ₹700 crore.
ICRA’s Stable outlook reflects the expectation that BlackSoil will maintain its credit metrics while continuing to scale its lending operations in a prudent and measured manner, supported by sound risk governance and liquidity management.
Commenting on the credit rating upgrade, Mr. Ankur Bansal, Managing Director, BlackSoil Capital, said:
“The upgrade of BlackSoil Capital’s long-term rating to [ICRA]A- (Stable) and short-term rating to [ICRA]A2+ by ICRA Limited is a strong validation of the institution we are building. Our focus on disciplined underwriting, a robust risk management framework, and calibrated growth has helped us strengthen our credit profile while remaining prudent across cycles. A differentiated alternative credit approach, improved capitalisation, and a steadily diversified funding base have enabled us to deliver consistent performance. As we scale, our priority remains to build BlackSoil into a trusted, long-term partner for India’s growth-stage businesses – known for responsible capital, strong governance, and speed of execution.”
The upgraded rating is expected to further strengthen confidence among lenders, investors, and other stakeholders, and support BlackSoil’s long-term strategy of scaling its alternative credit platform while maintaining a strong focus on asset quality and risk discipline.