Moody's cuts Larsen & Toubro view to negative

Moody's Investors Service said it changed the outlook on Larsen & Toubro Ltd.'s Baa2 issuer rating to negative from stable.

The change in outlook reflects the increase in the company's consolidated debt, which is higher than the agency's previous expectations as a result of the company's rapid growth plans, Moody's said.

The agency also noted that its key credit metrics could exceed the tolerance level set for its rating over the near to medium term as a result of the group's strategy to increase its business diversity by entering into new ventures along with expanding its infrastructure portfolio and supporting its finance subsidiaries.

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