Latest News | Moody's Upgrades Tata Steel's Long-term Rating to Baa3; Outlook 'stable'

Kolkata, Sep 25 (PTI) Moody's Investors Service on Monday upgraded Tata Steel's long-term issuer rating on the back of the company's solid market position and expectation of an increase in profitability.

The global rating agency has assigned a Baa3 long-term issuer rating to Tata Steel Ltd and has changed the outlook to "stable" from "positive".

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"The upgrade reflects our expectation of the continued strength in Tata Steel's credit profile due to the company's solid market position in India. We expect the company's profitability to increase even as softer steel prices dent revenues," says Moody's Senior Vice President, Kaustubh Chaubal.

Moody's said the stable rating outlook reflects Tata Steel's strengthening credit metrics that Moody's believes can be sustained even as the company invests in building new capacity in India and Europe.

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"The upgrade also reflects the company's considerable deleveraging through gross debt reduction and our expectation that Tata Steel will maintain conservative financial policies with a well-balanced capital allocation and financial metrics appropriate for its Baa3 rating," adds Chaubal, also a lead analyst on Tata Steel.

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