Enhanced India ratings to impact Tata Steel

Our Corporate Bureau
31 January 2007

Global ratings agency Standard & Poor's has raised its sovereign credit ratings for India to investment grade, and says the outlook on ratings remains stable.

With Tata Steel winning Corus, S&P analysts say that the revision poses financial implications on Tata. They say that this successful acquisition is good for the Tatas in the long run.

They will look at the level of committed financing, and will also look at some recourse to Tata and Corus in terms of debt.

They say that the last offer made had an incremental amount funded by debt.

CNBC-TV18 shares with domain-b its interview with Anshukant Taneja, credit analyst, S&P

What ramifications does this deal have on Tisco's ratings from S&P's perspective? What we would like to see is that since the offer has been revised upwards, it potentially poses new financing challenges for the company. We intend to see how they fund the entire offer and what bearing it has on the entire financial profile.