Brickwork Ratings has removed its 'under watch' rating on Tata Chemicals' Rs 250 crore non-convertible debentures and assigned rating with stable outlook, a development that comes days after TCS chief N Chandrasekaran was named new Executive Chairman of Tata Sons.
In October, Brickwork Ratings has placed the rating of Tata Chemical's unsecured non-convertible debentures worth Rs 250 crore "under watch", citing "heightened management risk" in the wake of Cyrus Mistry's ouster as chairman of Tata Sons.
"On a review based on the latest developments, we would like to inform you that Brickwork Rating has removed 'Rating under watch with developing implications' for the rating of BWR AA+ assigned to the NCD issue of Rs 250 crore of Tata Chemicals Ltd," Brickwork Ratings said in a letter to Tata Chemicals that was uploaded on the BSE.
"The rating now stands at BWR AA+ (Pronounced Double A Plus) (Outlook: Stable) for the company's unsecured NCD issue of Rs 250 crores," the letter added.
Instruments with this rating are considered to have the high degree of safety regarding timely servicing of financial obligation, Brickwork Ratings said, adding that such instruments carry very low credit risk.
N Chandrasekaran was chosen to step into the shoes of interim Chairman Ratan Tata, who took over on October 24 last year after the removal of Mistry.
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