Credit rating agency, India Ratings & Research has upgraded Tata Chemicals’ (TCL) long-term issuer rating to ‘AA+’ from ‘AA’ with stable outlook.
The company has received the said rating up-gradation on the back of its strong credit profile since FY08, despite its debt-funded inorganic growth and expansion in India and overseas, due to its strong profitability and continuous financial support from the Tata group. TCL has, in the past, received equity infusions from the group. The group holds a 31% stake in TCL and infused Rs 360 crore in TCL as preferential equity in FY11.
Tata Chemicals, part of the Tata Group, is a leading manufacturer of chemicals, fertiliser and food additives. The company has its manufacturing facilities in India, the UK, the US and Kenya.