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Standard & Poor’s Upgraded Tata Steel’s Foreign Currency Rating from ‘BB+’ to ‘BBB’ with Stable Outl
Standard & Poor’s today upgraded Tata Steel’s Foreign Currency Rating by two notches above India’s sovereign rating from ‘BB+’ to ‘BBB’ with stable outlook. Therefore, Tata Steel is now in the investment grade for any foreign currency debt issuance. S&P has commented, amongst other factors, the company is well insulated from direct and indirect sovereign risks since it demonstrates moderate leverage, strong free cash flow generation and a competitive business profile.
S&P has undertaken the above, as a part of the exercise to upgrade ten companies in Asia beyond the sovereign ceiling.
Mr. B Muthuraman, Managing Director commented that “this announcement is an important milestone and reflects Tata Steel’s competitive position in the Industry and will enable the Company to access global funds for executing its growth projects in the future. Tata Steel is committed to create sustainable long term shareholder value and become a significant steel player in the region”.
Mr. Koushik Chatterjee, Vice President (Finance) commented that “Foreign Currency rating of ‘BBB’ with stable outlook by Standard & Poor’s represent the strong Balance Sheet and financial position of Tata Steel. The rating will enable Tata Steel to access larger investor base and raise foreign currency funds efficiently”.