S&P's upgrades rating outlook for six firms including RIL, ONGC, NTPC

Standard & Poor's on Friday revised rating outlook to stable from negative of six domestic corporates, including Oil and Natural Gas Corporation (ONGC) and Mukesh Ambani-led Reliance Industries.

The improvement in outlook of RIL, Tata Consultancy Services (TCS), ONGC, NTPC (National Thermal Power Corporation), National Hydroelectric Power Corporation (NHPC) and Power Grid Corporation of India (PGCIL) follows S&P's revision in the sovereign credit outlook for India, the ratings agency said in a statement.

Earlier, the international rating firm had revised back India's outlook to stable from negative. A stable outlook means that the agency does not see a chance of more than one in three to lower the current credit rating.

S&P's said it revised the outlook on Reliance to reflect the reduced likelihood that it may lower the transfer and convertibility assessment following the sovereign action.

The outlook revision of ONGC, PowerGrid, NTPC, and NHPC reflects the sensitivity of these entities to the sovereign credit rating on India, given their strong relationship to the government.

"We expect the government to maintain its majority ownership, and influence the business and financial strategy of the companies," it said.

The outlook on the foreign currency rating on TCS has been revised following similar action on the sovereign, S&P's added.

Further, S&P's also revised the outlooks on four Indian government-related entities - EXIM Bank, India Infrastructure Finance Company, Indian Railways Finance Corp, and Power Finance Corp - to stable from negative.