Rating agencies turn positive on Tata Steel
Tata Steel's resolution plan for its UK operations has earned it favor from credit rating agencies as they see the outcome strengthening the steel-maker's cash position and limiting the drain to earnings at a consolidated level, while allowing its credit profile to remain steady even if steel prices turn soft. Moody's has upgraded the long-term issuer rating for the company to investment grade 'Baa3' on Monday, while CreditSights said that the deal would be a 'mild credit positive' for Asia's oldest producer of the alloy.
Earlier this month, Tata Steel announced the much-awaited resolution plan for its operations in the UK.
The local government will grant the company 500 million pounds as it transitions to a sustainable steel-making process at Port Talbot by building a three-million-tonne electric arc furnace. -
