Global rating agency Standard & Poor’s (S&P) has downgraded rating of steel major Tata Steel’s to ‘BB-’, a low investment grade rating, over persistent subdued operating performance amid subdued demand and low steel prices.
The agency lowered its long-term corporate credit rating on Tata Steel to ‘BB-’ from ‘BB’, adding that the outlook for the Mumbai-based firm is stable. S&P also lowered its long-term corporate credit rating on Tata Steel UK Holdings to ‘B+’ from ‘BB-’ but maintained a stable outlook on the firm struggling with high debt and lower sales.
Tata Steel, the flagship company of the Tata group is the first integrated steel plant in Asia and is now the world’s second most geographically diversified steel producer and a Fortune 500 Company.
