| Moody's downgrades rating of Tata Steel | |
| Press Trust of India / New Delhi June 8, 2009, 18:54 IST | |
Global rating agency Moody's today downgraded its credit rating on Tata Steel, primarily due to the deteriorating operating performance of its European operations, including Corus.
The corporate family rating for Tata Steel has been revised a notch lower to a low investment grade rating 'Ba3', Moody's said.
The corporate family ratings reflect a corporate entity's ability to honour all of its financial obligations.
The agency also downgraded the corporate family rating of Tata Steel UK to 'B2'.
This is the second downgrade for Tata Steel UK since January 12, when Moody's had lowered the company's ratings by one notch to 'B1' and initiated the review for further downgrade.
Besides, Moody's had downgraded the rating of Tata Steel Ltd from Ba1 to Ba2 on March 4 and had warned of further downgrade.
The ratings assigned for both Tata Steel and Tata Steel UK are low investment grade in nature.
"The rating action reflects the anticipated weakening of Tata Steel's consolidated financial profile over the intermediate term, driven by the weakness in the steel markets and the significant operating challenges faced by the company's European operations," Moody's analyst Ivan Palacios said.
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