Moody's: Larsen & Toubro unaffected

Moody's Investors Service said Larsen & Toubro Ltd.'s Baa2 issuer rating and negative outlook are unaffected by the company's announced $600 million fund-raising.

This follows the company's announcement of a proposed equity issuance and contemplated offering of up to $200 million of foreign currency convertible bonds.

The proceeds of the equity and convertible bond issues will be invested in infrastructure development projects and in other businesses, and used for planned capital expenditure and general corporate purposes.

"Moody's had already factored a potential equity issuance of US$600 million into its analysis when it changed the outlook on L&T's issuer rating to negative on 20 August 2009," says Ivan Palacios, a Moody's AVP/analyst, in a news release.

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