It's a sixer for India Inc

International rating agency, Standard & Poor's Ratings Services, today raised its ratings on six Indian banks and six government-owned entities to investment grade, following a similar revision in India's sovereign credit rating.

The agency said that that it had raised its corporate credit ratings on Indian Oil Corporation (IOC), NTPC and National Hydroelectric Power Corporation (NHPC) to BBB- from BB+ with a stable outlook.

Among domestic lenders, State Bank of India, ICICI Bank, Industrial Development Bank of India, Bank of India, Indian Overseas Bank and UTI Bank saw their ratings being upgraded to BBB- with a stable outlook.

The rating agency also raised its long-term foreign and local currency issuer credit ratings on Export-Import Bank of India , Power Finance Corporation, and Indian Railway Finance Corporation to 'BBB-' from 'BB+'. The outlook for all three ratings is stable.

"The rating upgrade on IOC is driven largely by expectation of continued government support to the entity, given the prevailing policy on pricing of refined products and IOC's prominent position and role in the energy sector in India," said Standard & Poor's credit analyst Anshukant Taneja.

Going forward, as the Indian energy market liberalises and market-determined pricing is introduced, it would re-assess the level of government support for this entity, said the agency.

Similarly, the rating upgrade on NHPC was supported by its close alignment with the government's plan for power sector development and continued budgetary support for its capital expenditure.

For NTPC, the rating reflects the stand-alone credit profile of the company and its dominant market share in the electricity generation sector.