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S&P Global Ratings revises outlook on Tata Steel to positive from stable

Tata Steel will continue to support its 100% subsidiary Tata Steel UK Holdings when needed.

Press Trust of India 

India's core sector growth down to 19-month low of 1.8% in January
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on Tuesday said it has revised its outlook on to positive from stable. The diminishing prospect of Bhushan Power and Steel’s (BPSL) acquisition and the sustained high steel prices in India are key factors for the outlook revision on Tata Steel, S&P said. “The positive outlook reflects our view that stable prices and improvements in earnings combined with our expectation that the acquisition of BPSL would not happen, are likely to improve Tata Steel’s credit ratios in the next 12 months,” it said.

The US-based rating agency also noted that will continue to support its 100 per cent subsidiary UK Holdings when needed.

"In line with the rating action on Tata Steel and in view of stable operating performance in TSUKH, we are revising our outlook on (also) to positive," it added.

Besides, the agency said it expects Tata Steel to successfully divest its housed under in the next two to three months.

First Published: Tue, April 02 2019. 21:04 IST