The long term corporate credit rating of Tata Steel has been lowered to BB- from BB and its wholly owned subsidiary Tata Steel U.K (TSUK) to B+ from BB- by Standard & Poor’s. The rating agency has also said that the outlook for both these ratings is negative. It has also affirmed the B short term ratings of TSUK.
But it has lowered Tata Steel’s senior unsecured bank loan ratings to BB- from BB. Also, the rating of TSUK’s British Pound 3.67 billion senior secured debt from BB+ to BB and placed on Credit Watch with negative implications. The agency said that the rating downgrades reflect the weak global market conditions for steel products given the significant slowdown in the auto and construction industries.
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