The Hindu Business Line : Fitch gives high rating for L&T Holding's NCD programme

FITCH India has assigned F1+(ind) rating to the proposed Rs 75-crore short-term non-convertible debenture programme of L&T Holdings Ltd (LTHL), rating being based on the `letter of comfort' provided by L&T Ltd.

This is apart from the proposed Rs 100-crore redeemable NCD programme of L&T.

The proposed borrowing is towards part financing the special purpose vehicles promoted by LTHL which expects to generate revenue from project management, dividend income and divestment of stake from operational SPVs, said a news release from Fitch India.

The F1+(ind) rating denotes `highest credit quality' and indicates the strongest capacity for timely payment of financial commitments, said the news release.

Two weeks ago, Fitch had upgraded the outstanding ratings of the Rs 50- crore NCD programme of LTH from AAA (ind)(SO) and had assigned the same rating to the proposed Rs 100-crore redeemable NCD programme of LTH.

This rating was also based on an irrevocable and unconditional guarantee from L&T. The outlook on the rating is stable.

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