Credit Analysis & Research (CARE) reaffirmed 'A' ratings to Tata Teleservices (Maharashtra)'s long -term bank facilities of Rs 36.95 billion. CARE reaffirmed 'A' ratings to the company's short-term bank facilities of Rs 14.16 billion.

The ratings continue to factor in the financial support derived by virtue of Tata Teleservices (Maharashtra) being part of the Tata group and its strategic importance as the group operates in domestic mobile communication segment through TTML along with the associate company TTSL.

The ratings also factor in the company’s initiatives with Tata Teleservices (TTSL) to derive synergistic benefits, growing contribution of Value Added Services and data services to TTML’s revenue and favourable 2G tariff regime currently prevalent in the industry.

The rating strengths are however tempered by its continued losses, high leverage position on account of significant debt funded capital expenditure and intense competition in the industry.

Ability of the company to stem losses and increase its market share in the face of intense competition, impact of developing regulatory frame work on TTML and continued support from the Tata Group remain the key rating sensitivities.

Shares of the company declined Rs 0.24, or 3.05%, to settle at Rs 7.64. The total volume of shares traded was 1,822,317 at the BSE (Thursday).