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Our Bureau

Mumbai , Dec. 17

STANDARD & Poor's today revised to stable, the outlook on seven Indian corporates — six of which are energy companies.

The international rating agency has revised to `BB' the outlook on Indian Oil Corporation, Indian Railway Finance Corporation, National Hydroelectric Power Corporation, National Thermal Power Corporation, Power Finance Corporation, Reliance Industries Ltd and Tata Power Company Ltd.

The rating will help the corporates negotiate lower rates for foreign currency loans, said a senior energy analyst.

According to a senior PSU oil company official, it will have a positive impact in the long term; especially when foreign banks fix their exposure to Indian corporates in the coming financial year. The rating will not have any impact in the short-term as the RBI continues to regulate appreciation of the rupee, he said.

The revision reflects "significant improvement in the external sector of the country and rising current account earnings and external liquidity as a result of the growing dynamism of the private sector", a news release said here.

S&P's has maintained a negative outlook on National Hydroelectric Power Corporation's local currency ratings as `BB+'. This is in line with the negative outlook assigned to India's local currency rating on Tuesday. The rating agency has, however, not assigned a local currency rating to any of the other companies.

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