International credit rating agency, Fitch Ratings has affirmed the Long-Term Foreign Currency Issuer Default Rating (LT FC IDR) of India-based Tata Steel at ‘BB+’. The agency has also affirmed Tata Steel UK Holdings’ LT FC IDR at ‘B+’. The outlook remains Negative. The agency has also assigned the company a senior unsecured rating of ‘BB+’.
The agency cited pressure on Tata Steel’s profitability in its Indian as well as European operations behind this rating. The company’s performance was weak in the first 9 months of last fiscal, with EBITDA margin falling to 8 per cent reflecting the challenging economic conditions.
