International credit ratings agency Moody's has said that Tata Steel Ltd's planned restructuring/divestment of its UK businesses is credit positive because it will reduce some of the negative pressure on its operating performance.
With the impact of the loss-making UK operations being addressed, Moody's expects Tata Steel UK’s operating performance to improve, based on the expectation that steel demand in Europe will increase by 1-1.5 percent in 2016, and the imposition of antidumping duties by the European Commission in February 2016 on steel imports from China and Russia.
Tata Steel recently announced that it will explore all options in restructuring its wholly-owned subsidiary, Tata Steel Europe Limited, including the potential divestment of Tata Steel UK Limited, in whole or parts.