Ratings agency Standard and Poor's has raised Tata Steel's long-term corporate credit rating a notch to 'BB' from 'BB-’with a stable outlook on the back of the company's sound financial profile and strong cash flows.
'BB' rating assigned by the agency suggests moderate default risk. Meantime, the rating firm has affirmed 'B+' long-term corporate credit rating and 'B' short-term rating on Tata Steel's European subsidiary, Tata Steel UK Holdings with a stable outlook. Further, S&P has revised company's financial risk profile to 'significant' from 'aggressive' due to its deleveraging measures and higher cash flows.
