Tata Sons is likely to hit the market with a AAA (highest safety) rated non-convertible debenture issue of up to Rs 500 crore. Crisil, which awarded the AAA rating for this programme, has also reaffirmed the AAA rating assigned to seven other non convertible debenture programs of the company aggregating to Rs 760 crore.

The FAAA (highest safety) rating assigned to its fixed deposit programme has also been reaffirmed.

The ratings reflect the business strength and strong cash flows from the company's largest division, Tata Consultancy Services, leading to a favourable financial position for Tata Sons. The rating also takes into account Tata Sons' status as the principal holding company of the Tata group, said a Crisil press release.

Tata Sons has five operating divisions. Tata Consultancy Services (TCS), the largest, generates over 90 per cent of the group's income and profits. TCS has exhibited strong and sustained growth in income and profitability in the past reflecting the strong growth prospects and profitability margins of the software exports business in India.

This positive outlook is founded upon the strength of the world's second largest pool of high-quality, English-speaking technical personnel, low manpower costs in relation to developed nations and the booming demand for software applications.

TCS will continue to face challenges in managing consistently high growth rates, rapid changes in business mix owing to technology shifts, high manpower attrition rates and geographic risks. The continued strong performance of TCS remains crucial to Tata Sons, given the large outlay of funds required to increase investments in group companies and investments in new ventures of the Tata Group, either directly from Tata Sons or via Tata Industries, said Crisil.