New Delhi: Standard & Poor's on Friday revised rating outlook to stable from negative of six Indian corporates, including ONGC and Mukesh Ambani led Reliance Industries.
The improvement in outlook of RIL, TCS, ONGC, NTPC, NHPC and PGCIL follows S&P's revision in the sovereign credit outlook for India, S&P's 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 very 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, Power Finance Corp-- to stable from negative.
S&P also affirmed the long-term issuer credit ratings of these four entities at 'BBB-'.
The revision came after the rating agency raised India's credit rating outlook to stable from negative.
"We have equalised the ratings and outlooks on Exim, IIFCL and IRFC with the sovereign rating and outlook. This reflects the entities' integral linkages with, and their critical roles to, the Government," the rating agency said.
S&P believes there is an 'almost certain' likelihood of extraordinary Government support to these three entities.
For PFC, the agency believes it's link to the government is very strong and therefore expects extraordinary support from it for the PSU.
