Moody’s may upgrade Tata Steel, its UK arm

Tags: News
Moody’s Investors Service has put Tata Steel and Tata Steel UK Holding (TSUKH) under review for upgrade as the company has been able to make progress on refinancing its European assets and tap global markets to lock in cheaper funds.

The review for upgrade has been triggered by two bond issuances by ABJA Investment, which were guaranteed by Tata Steel, for a total consideration of $1.5 billion and by the rapid progress made on the refinancing of Tata Steel UK Holding’s senior facilities agreement, Moody’s said in a report on Monday.

“On the back of improving sentiment in Europe and India, Tata Steel has been able to make swift progress on refinancing its European assets and in opportunistically tapping global markets to lock in cheaper funds for the group,” said Alan Greene, Moody’s vice-president and senior credit officer.

Moody’s Investors Service has put Tata Steel’s corporate family rating of Ba3 and TataSteel UK Holdings’ corporate family rating of B3 under review for upgrade. The other ratings under review for upgrade are TSUKH’s probability of default rating of B3-PD, and the B3LGD 3(49 per cent) rating of TSUKH’s term loan facility, the report said.

“Tata Steel’s Ba3 rating has been held back by TSUKH’s weak performance in recent years despite its very profitable assets in India. With TSUKH on a better footing both operationally and financially, the strength of the parent can better benefit the group,” Greene, also the lead analyst for Tata Steel, said.

Tata Steel, on a standalone basis, has consistently been one of the most profitable steel companies globally.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • India would have done well not to supress the 'Bofors interview'

    Bofors is one case that refuses to go away two-and-half decades after it grabbed public attention and became a byword for political corruption, claimi

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Varun Dutt

THE BLAME GAME

In decision-making, the fundamental attribution error (FAE), also known as ...

Zehra Naqvi

Dignity of labour is dignity of life

M Rafi Khan, a retired police IG, used to ...

Gautam Gupta

Retailers have it tough, thanks to e-commerce

For the past few months our focus has been on ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture