SINGAPORE (Standard & Poor's) Feb. 18, 2005--Standard & Poor's Ratings Services said today, that following a news report in a major Indian newspaper, it is examining the circumstances surrounding missed interest payments in late December 2004 by Instrumentation Ltd. and HMT Ltd., two public sector companies under India's Ministry of Heavy Industries. The missed payments on the bond issues, which are reportedly guaranteed by the Indian government (BB+/Stable/B), have become the direct obligation of the government, and hence progress in fulfilling these obligations has potential implications for the sovereign's credit rating. Outstanding general government guaranteed debt has consistently been about 10% of GDP, highlighting the Indian government's predilection to extend guarantees to public sector entities, which translate into a sizable
