Fitch Ratings affirms long-term rating of Tata Chemicals at 'BB+'
Fitch Ratings said that it has affirmed Tata Chemicals' (TCL's) long-term foreign currency issuer default rating (IDR) at 'BB+' with 'stable' outlook.
The rating agency stated that the rating affirmation reflects our view that the strong balance sheet buffers built by TCL in recent years will support its financial profile through the ongoing period of oversupply in the global soda ash industry, despite weakening EBITDA margins.
The rating is also supported by TCL's strong business profile as one of the world's largest soda ash producers, its cost competitive and geographically diversified operations, and the industry's end-market diversification.
Tata Chemicals is one of the world's largest producers of soda ash, with a global capacity of 3.981 million tonnes per annum (4.401 million tonnes including sodium bicarbonate and 6.501 million tonnes including salt as well). The companys manufacturing operations are spread across India, the US, the UK and Kenya.
The scrip fell 2.49% to currently trade at Rs 806.15 on the BSE.
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