International credit rating agency Moody’s has announced that it has affirmed Indian steel producer Tata Steel Limited’s ‘Ba3’ corporate family rating and has changed the rating outlook to positive from stable. Meanwhile, Moody’s has also upgraded the corporate family rating of Tata Steel UK Holdings Limited, UK-based subsidiary of Tata Steel, to ‘B2’ from ‘B3’, with a stable outlook.
Moody’s stated that the upgrade in Tata Steel UK’s corporate family rating reflects its expectation that the steady improvement in the company's operating performance with EBITDA/ton remaining positive for eight consecutive quarters since June 2016 and will be sustained over the next 12 months. In addition, the positive outlook on Tata Steel's rating reflects the improvement in Tata Steel UK’s operations that have long been a drag on consolidated metrics and the company's strengthening business profile in India.