 "Tata Group shares gain on Moody's upgrades ratings")
Shares of Tata Group companies are trading higher by up to 9% in otherwise subdued market after global rating agency Moody's has upgraded the ratings for many group firms including Tata Motors, Tata Steels and Tata Consultancy Services (TCS).
Among the group stocks - TCS, Tata Power, Tata Steel, Tata Sponge Iron, Tata Elxsi, Tata Investment Corporation, Indian Hotels and Tata Teleservices (Maharasthra) are up 1-9%, while Tata Motors trading flat on the Bombay Stock Exchange (BSE).
Alan Greene, a Moody's Vice President, Senior Credit Officer said the multiple rating actions are based on the track record of Tata Sons in providing timely support to its investee companies.
Rating assessment also captures ability to provide future support, and on the need to protect the brand reputation of Tata from the consequences of an entity's distress.
"In recent years, we have seen Tata Sons inject money, typically through equity rights issues, into its companies, to fund their growth plans or to bolster any weak balance sheets", he said.
Dividends paid by TCS, a 73.7%-owned subsidiary, are the predominant source of funds for Tata Sons. In the last ten years since its IPO, TCS has become India's largest business process services/IT services outsourcing company and a leading, globally competitive business.
Shares of TCS were up nearly 3% hit a record high of Rs 2,711 on BSE. Among the other individual stocks - Tata Sponge Iron has rallied 9% to Rs 950, followed by Tata Investment Corporation (8% at Rs 608), Tata Elxsi (7% at Rs 648) and Indian Hotels (4% at Rs 104).
Among the group stocks - TCS, Tata Power, Tata Steel, Tata Sponge Iron, Tata Elxsi, Tata Investment Corporation, Indian Hotels and Tata Teleservices (Maharasthra) are up 1-9%, while Tata Motors trading flat on the Bombay Stock Exchange (BSE).
Alan Greene, a Moody's Vice President, Senior Credit Officer said the multiple rating actions are based on the track record of Tata Sons in providing timely support to its investee companies.
Rating assessment also captures ability to provide future support, and on the need to protect the brand reputation of Tata from the consequences of an entity's distress.
"In recent years, we have seen Tata Sons inject money, typically through equity rights issues, into its companies, to fund their growth plans or to bolster any weak balance sheets", he said.
Dividends paid by TCS, a 73.7%-owned subsidiary, are the predominant source of funds for Tata Sons. In the last ten years since its IPO, TCS has become India's largest business process services/IT services outsourcing company and a leading, globally competitive business.
Shares of TCS were up nearly 3% hit a record high of Rs 2,711 on BSE. Among the other individual stocks - Tata Sponge Iron has rallied 9% to Rs 950, followed by Tata Investment Corporation (8% at Rs 608), Tata Elxsi (7% at Rs 648) and Indian Hotels (4% at Rs 104).