Tata Steel slumped 5.05% to Rs 234.45 at 9:27 IST on BSE after global credit agency S&P downgraded the corporate credit rating of the company by one notch.
The announcement was made by the company before market hours today, 14 January 2016.Meanwhile, the S&P BSE Sensex was down 253.06 points or 1.02% at 24,601.05.
On BSE, so far 86,218 shares were traded in the counter as against average daily volume of 9.94 lakh shares in the past one quarter. The stock hit a high of Rs 236.40 and a low of Rs 231.70 so far during the day.
Tata Steel said that the sharp fall in international steel prices has triggered a downgrade of the company's corporate credit rating by Standard and Poor (S&P). The S&P downgraded the corporate credit rating of the company by 1 notch. S&P expects Tata Steel's cash flows to remain under pressure over the next 12-24 months because of lower steel prices, competitively priced imports and compressed profitability. Tata Steel said that its long term corporate credit rating has been downgraded by S&P to BB- from earlier BB. Tata Steel UK Holdings' long term corporate credit rating has been downgraded to B+ from BB-. ABJA Investment Co. Pte.'s issue rating on its guaranteed senior unsecured notes has been downgraded to BB- from BB. S&P has affirmed B short term corporate credit rating on Tata Steel UK Holdings.
S&P said that the stable outlook reflected its expectations that Tata Steel's operating performance will likely recover over the next 12-15 months as profitability at the India operations gradually improves and the performance of the European operations remains stable.
Tata Steel's consolidated net profit rose 21.87% to Rs 1528.71 crore on 18.1% fall in net sales to Rs 29068.54 crore in Q2 September 2015 over Q2 September 2014.
Tata Steel is Europe's second largest steel producer. The combined Tata Steel group is largest steel producer in the world.
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