ICRA assigns highest rating to Tata Sons' debt programme

Credit rating agency ICRA has assigned the highest credit rating to the Rs 350 crore long-term debt programme of Tata Sons, the Tata Group's holding company.

“ICRA has assigned an LAAA rating to the Rs 3.5 billion (Rs 350 crore) non-convertible debenture programme of Tata Sons (TSL). This is the highest credit quality rating assigned by ICRA to long-term debt instruments,” ICRA said in a release.

The rating reflects TSL's status as the principal investment company of the Tata Group, leading business and financial position of most of its major investee companies, strong financial flexibility derived from the market value of its investments and currently conservative capitalisation levels, it added.

The agency also has rating outstanding of LAAA on the Rs Rs 6,750 crore non-convertible debenture programmes of TSL.

Further, ICRA has rating outstanding of A1+ on the Rs 2,625-crore commercial paper programme of TSL.

“A1 is the highest-credit-quality rating assigned by ICRA to short-term debt programme. Instruments rated in this category carry the lowest credit risk in the short-term,” the release said.