Credit rating agency, CARE has reaffirmed ‘AA+’ rating to Tata Communications’ Non Convertible Debenture (NCD) worth Rs 1,650 crore which was enhanced from Rs 1,150 crore. The rating agency has also reaffirmed ‘A1+’ ratings to company’s Short-term Debt (STD) worth Rs 500 crore which was reduced from Rs 1,150 crore.
The company has received the said rating on the back of its dominant position in the global voice segment, diversification of revenues and improved operating performance owing to increased focus on high margin data and managed services, EBITDA, break even of TCL’s South African subsidiary Neotel (Neotel) in FY12, in-principle approval received for the demerger of Videsh Sanchar Nigam’s (VSNL) land and the completion of the Tata Global Network (TGN).
Tata Communications, a part of the Tata Group, is engaged in the provision of transmission, global Internet Protocol (IP) and Virtual Private Network (VPN) solutions, converged voice, mobility, managed network connectivity, hosted data center, communications solutions and business transformation services to global and Indian enterprises.
