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Crisil upgrades ratings on Tata Tele's bank loan facilities of 5,166 cr

The credit rating agency cited the 'strong support' expected from Tata Sons to Tata Teleservices

Press Trust of India  |  New Delhi 

Crisil upgrades ratings on Tata Tele's bank loan facilities of 5,166 cr

(Maharashtra) Ltd today said Crisil has upgraded the ratings on its bank loan facilities of Rs 5,166 crore.

The credit rating agency cited the "strong support" expected from Tata Sons to and its associate as the rationale for the upgrade.

"Crisil has upgraded its ratings on the bank loan facilities of (Maharashtra) Ltd (TTML) to 'CRISIL AA-/CRISIL A1+' from 'CRISIL A/CRISIL A1'," said in a regulatory filing.

Crisil's AA rating indicates high degree of safety regarding timely servicing of financial obligations.

The ratings have been removed from 'watch with developing implications' and a 'stable' outlook has been assigned to the long-term facilities, the rating agency said in a statement.

Tata Sons intends to invest Rs 20,000 crore in Tata Tele (against the earlier plan of Rs 14,000 crore) that will be used primarily for repaying debt.

The remaining bank debt is expected to be refinanced through debt instruments of short to medium term maturity, the statement said, adding that Tata Sons will work with Tata Tele in case the latter needs to arrange for any shortfall in liquidity that may be required for on-time debt repayment.

"Crisil had placed its ratings on Tata Tele on 'Watch with Developing Implications' on October 17, 2017, following an announcement by to combine Tata Tele's consumer mobile business with Bharti Airtel," it noted.

Tata Tele has also announced plans of divesting its enterprise, and fixed-line and broadband businesses to group

"Crisil has received clarity over likely timelines for divesting the consumer mobile and other businesses, and the overall debt reduction plan, and believes Tata Sons' continued support will enable Tata Tele to meet external liabilities in a timely manner," the statement said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, November 22 2017. 21:23 IST