Tata Steel Ltd.

Moody’s Investors Service has affirmed the credit ratings assigned to Tata Steel as well as Tata Steel UK Holdings, saying that their profitability and cash generation are unlikely to deteriorate in the next 12 months. The global rating agency has maintained the negative outlook on the two entities.

However, the rating agency has warned that against a backdrop of elevated leverage and further negative free cash flow in the current year, the risks of a downgrade have not fully abated. The agency has added that as further evidence of a more sustained recovery emerges, ratings could return to stable over the coming quarters.

The rating agency has given corporate family rating of ‘Ba3’ for Tata Steel, Tata Steel UK Holdings’ corporate family rating and probability of default ratings are ‘B3’ and ‘B3-PD’, respectively.