Fitch raises Tata Steel rating to 'BBB-'

On October 9, Fitch Ratings raised Tata Steel Limited's Issuer Default Rating (IDR) from 'BB+' to 'BBB-'. Additionally, the rating agency has kept its outlook constant in this situation.

 

Due to less uncertainty and reduced financial risk related to its UK operations, Tata Steel Limited's (TSL) Standalone Credit Profile (SCP) was revised from "bb" to "bb+," which led to the upgrading.

 

The rating agency observed that the strategic move made by Tata Steel to replace blast furnaces with more affordable and environmentally friendly electric arc furnace (EAF)-based steelmaking capacity is anticipated to improve the cost competitiveness of its UK operations.

 

In addition, Fitch noted that Tata Steel's IDR has been raised one notch as a result of possible help from the Tata Group.

Fitch's decision to take these actions is based on the expectation of a substantial improvement in Tata Steel's profitability in the United Kingdom. According to Fitch, "TSL's plan to install EAF-based steelmaking capacity of 3 million tonnes per annum (mtpa) at Port Talbot, UK, within the next three-four years should allow the UK business to generate a profit even during industry downturns, instead of being a drag on TSL's financial performance."

Top stories
Company

Zee to Raise Funds Worth $239 mln via FCCBs

4 mins read . 19 Jul 2024 . 05:09 AM

Budget

Will Market Bloom in Green and Break Budget-Day Jinx on July 23?

4 mins read . 17 Jul 2024 . 12:19 PM

Budget

Interesting Facts to Know Ahead of Union Budget 2024

5 mins read . 17 Jul 2024 . 12:12 PM

Related Blogs
blog-logo

Share Market

blog-logo

15 mins read . 08 Jul 2024

Best Oil & Gas Stocks in India

  • 1 people read
blog-logo

Share Market

blog-logo

11 mins read . 08 Jul 2024

How to Withdraw SIP Amount?

  • 1 people read
Kickstart your equities journey today You've got this
By submitting this I agree to the terms & conditions