Rating agency -- Fitch Ratings has upgraded Tata Steel’s Issuer Default Rating (IDR) to 'BBB-' from ‘BB+’ with a stable outlook. It has also upgraded the rating on $1 billion notes issued by Tata Steel subsidiary ABJA Investment.
The upgrade follows a revision in the company's stand-alone credit profile (SCP) to 'bb+', from 'bb', on the reduction in uncertainty and financial risk from its UK operations. In the UK, company will replace its blast furnaces with more cost-efficient and environment-friendly electric arc furnace (EAF)-based steelmaking capacity.
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.
