Tata Steel gains on Moody's upgrade

Tata Steel has gained over 1.5% to Rs 401 on the BSE (Bombay Stock Exchange) after Global rating agency Moody's has upgraded Tata Steel ("TSL")'s corporate family rating to Ba1 with a stable outlook.

The upgrade reflects the group-wide refinancing and the improved liquidity which will support further growth of its highly profitable Indian operations, Moody’s said in a statement today.

Moody's also confirmed Tata Steel UK Holdings Ltd’s (TSUKH)'s corporate family rating and probability of default rating at B2/B2-PD with a positive outlook.

This concludes the rating review announced on 28 July 2014 in response to the Group's $6.9 billion refinancing exercise and which was extended on 18 September when a rating uplift of one notch, to reflect Tata Group support, was assigned to several Tata entities, including Tata Steel.

The stock opened at Rs 402 and touched a high of Rs 405. At 12:05PM over 2.5 million shares were traded on both the stock exchanges.