International credit ratings agency Fitch Ratings has affirmed the credit rating of the Indian steel giant Tata Steel Limited at BB+, while the outlook remains negative.
The negative outlook continues to reflect Fitch's expectations of likely pressure on Tata Steel's profitability at its Indian and European operations. The steelmaker's performance was weak in the first nine months of the financial year 2012-13 with its EBITDA margin falling to eight percent, reflecting the challenging economic conditions.
Fitch expects the growth in Tata Steel's crude steel volumes during the financial year 2012-13 to result in EBITDA growth over the medium term, with a larger proportion of additional volume likely to be in value-added products. However, any significant fall in steel prices may impact the company's financial profile negatively.