CRISIL has reaffirmed 'A/Stable' ratings on the bank facilities of Tata Teleservices (Maharashtra) (TTML), worth Rs 40 billion. The rating continues to reflect the strategic importance of TTML to the Tata group's telecommunications (telecom) plans.

The ratings also factor in the support that the company receives from the group, and NTT DOCOMO Inc (Docomo; rated 'AA/Negative/A-1+' by Standard & Poor's). These rating strengths are partially offset by TTML's weak market position leading to low profitability, and its high gearing and modest debt protection metrics because of large, debt-funded capital expenditure (capex) programmes.

CRISIL believes that Tata Tele will continue to receive timely support from the Tata group and technological support from Docomo, over the medium term. The outlook may be revised to 'Positive' if Tata Tele reports a significantly better-than-expected operational and financial performance, or if its capital structure improves substantially, because of larger-than-expected equity infusion. Conversely, the outlook may be revised to 'Negative' if Tata Tele's capital structure and debt protection metrics deteriorate considerably, or if the company is adversely impacted by any change in regulations for telecom operators.

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).