Moody's upgrades Tata Steel's corporate rating to Ba2
On Wednesday, Moody's agency raised Tata Steel's rating from Ba3 to Ba2. The outlook was changed from positive to stable. According to experts, the update reflects a steady improvement in the company's credit profile.
India remains a key market for Tata Steel, accounting for 57 percent of global steel sales, 54 percent of consolidated revenues and 85 percent of consolidated EBITDA, as a result of the company's strong operating environment and backward integration of the company into its own raw materials production. in Moody 's post.
During April-December 2018-19, Tata Steel's Indian operations tripled the profitability of its European operations. In addition, the successful integration of Bhushan Steel in 2018 and the proposed acquisition of Usha Martin's steel business further solidify the steel giant's business profile.
- The stable outlook also includes Moody 's expectation that Tata Steel will remain selective in its acquisitions, financing them with a reasonable level of investment, - the rating agency expressed its wish.