S&P puts TCS in investment grade

Written by Agencies | Mumbai, October 23: | Updated: Oct 23 2007, 22:53pm hrs
Tata Consultancy Services, the largest IT firm of the country, said global rating agency Standard & Poor's has assigned an investment grade to the company.

The corporate credit rating with a positive outlook, BBB, is higher than India's rating and "highlights the financial robustness of our business model and operating strengths of the company," TCS informed the Bombay Stock Exchange.

"The S&P rating also reflects our conservative financial policy that restricts the use of debt and ensures adequate liquidity. This rating is the highest issued for any company in the country," TCS Chief Financial Officer S Mahalingam said.

According to S&P, the company has strong liquidity, with cash and bank deposits of Rs 1,230 crore, about 9.4 per cent of total assets as on March 31, 2007.

In addition, the company has investments in mutual funds, equity, and debt instruments of Rs 1,270 crore and the agency expects the company's liquidity to remain strong and more than sufficient to cover its short-term debt.

Shares of the company closed at Rs 1,064.20, down 0.95 per cent.