India Ratings (Ind-Ra) has revised its outlook for Indian steel producer Tata Steel Limited (TSL) to positive from stable, while affirming the company’s long-term issuer rating at “INDAA”, according to a report by the firm on Friday, June 11.
Ind-Ra continues to take a consolidated view of TSL and its subsidiaries to arrive at the ratings, owing to the strong operational and strategic linkages among them,” the report said.
A sustained increase in the consolidated profitability, leading to an improvement in the credit metrics with the adjusted net leverage below 3.0x on a sustained basis, and lower refinancing requirements at overseas group entities could lead to a positive rating action, according to the report.