S&P Global Ratings has upgraded Bharti Airtel's (NSE:BHARTIARTL, BOM:532454) long-term issuer credit ratings to BBB+ from BBB, among other ratings, according to a recent release.

The upgrade reflects an earnings boost and greater debt-payment capacity due to rising data consumption in the high-growth markets of India and Africa, the rating agency said.

S&P expects the company's Indian subscriber numbers to rise by 3% to 4% over the next year, while its African base will expand by 9% to 11%.

The telecom company will also tighten its balance sheet management and will further lower its leverage, S&P said.

The rating agency expects the company's ratio of funds from operations (FFO) to debt to be between 50% and 52% in fiscal 2027 and about 60% in fiscal 2028, compared with an estimate of 43.8% in fiscal 2026.

The outlook is stable, stemming from expectations of the company reducing debt while improving earnings and cash flow, as well as retaining a supportive leverage level, S&P said.

Significant shifts in the company's leverage, FFO-to-debt ratio, earnings, or cash flow, among other factors, could lead to future rating actions.