Asia
Moody's Upgrades Ratings of Four Major Indian Companies After Change in Rating Methodology
Moody's has upgraded the ratings of four major corporates in India as part of the revision of its sovereign-linked ratings methodology, which replaces its earlier framework, according to a Friday statement issued by the ratings agency.In this process, Tata Consultancy Services' (NSE:TCS, BOM:532540) long-term local currency issuer rating was upgraded to A2 from Baa1. The long-term local currency issuer rating of another technology giant, Infosys (NSE:INFY, BOM:500209), was upgraded to A2 from Baa1.Both companies are the only ones to be rated at four notches above the Indian sovereign.Moody's said both technology giants benefit from a highly diversified revenue base across geographies and sectors, strong and consistent profitability, excellent liquidity, a debt-free balance sheet, and sustained robust free cash flow generation.The ratings agency also upgraded Reliance Industries' (NSE:RELIANCE, BOM:500325) long-term local currency issuer rating and its foreign currency senior unsecured ratings to Baa1 from Baa2, while Tata Steel's (NSE:TATASTEEL, BOM:500470) long-term foreign currency issuer rating has moved up to Baa2 from Baa3.Moody's said Reliance gains from its leading positions across oil-to-chemicals, digital services, and retail, as well as counter-cyclical business segments and significant international exposure, with more than one-third of revenue coming from exports.For Tata Steel, Moody's said that the company continues to benefit from its close association with the parent Tata Sons and the broader Tata Group, including the strength of the Tata brand, which supports its access to funding and relationships with lenders and investors.The outlook for all four Indian companies remains stable, the statement said.
BOM:500209BOM:500325BOM:500470BOM:532540NSE:INFYNSE:RELIANCENSE:TATASTEELNSE:TCS
