CARE assigned CARE A+ rating to long-term bank facilities worth Rs 150 crore for TTSL implying that the facilities offer adequate safety for timely servicing of debt obligations and carry low credit risk.

For short-term bank facilities worth Rs 100 crore, the agency has assigned PR+ indicating strong capacity for timely payment and lowest credit risk.

According to the agency, Tata Group’s support to the subsidiary, successful balance sheet restructuring carried out during FY09, strategic alliance with NTT DoCoMo involving upfront equity infusion, pan-India presence in the CDMA segment and increase in the subscriber base due to launching of services in the GSM segment have helped in assigning the rating. .

However, the ratings are constrained by losses during the past years, low profitability, significant expansion plans involving substantial capex and increasing competition in the telecom sector.