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 barring it has on the entire financial profile.

We maintain that a successful acquisition of Corus is good for Tata Steel in the long run because it gives them a wider market and product and we maintain that view.

What is the key concern for you in terms of the financials; the amount of debt they will have to now carry on their shoulders?
This is a fairly strategic decision for the company. So there would be a fair amount of commitment behind it, and to support the debt that is required for the acquisition, which is now looking at a total outlay of USD 2 million.

What would you expect to see from the Tatas before you take a final call on the rating? What kind of parameters would you like to look at?
We would like to look at committed financing available now, and how the financing is structured, what is the recourse to the parent company Tata and what potentially is the recourse on Corus.

We don't just go by the element of accounting consolidation. But we would view it from the point of economic incentive - what is the incentive for Tata Steel to support the debt for the acquisition. It clearly is a very significant step for the company going forward. We would imagine they would have fair amount of motivation to support the liabilities.

When you say that, do you imply that they would like to bring in a lot of equity money and not stretch the debt part of it so much?
We are still awaiting the final details. In the last offer, when they revised it, they did mention that the incremental amount is getting funded to debt. So there is a potential that the trend might continue; that more debt might come in. But we will have to wait for final details to come from the company.

When do you review your call on Tata Steel?
We think, in about 30 odd days, they will tie up the committed amounts and then we get a chance to review the rating. The last time we had looked at it, when they had increased the offer from 455 to 500 pence and that was a month ago. Now, there is a new offer with higher outlay. So we would need to see the revised financing arrangement.