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Coronavirus impact: S&P lowers Tata Steel rating from 'BB-' to 'B+'

The negative outlook reflects risks of further weakening in Tata Steel's credit profile if the effect of economic conditions and lower commodity prices are more prolonged than current expectations

Tata Steel is on a home run: EBITDA rises from domestic operations

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While the company has taken cost reduction initiatives over the past year, a sharp drop in volumes together with pricing pressure will likely lead to a material EBITDA level loss

Abhijit Lele Mumbai

2 min read Last Updated : Apr 15 2020 | 9:37 AM IST

Standard & Poor’s has lowered Tata Steel Ltd’s long-term foreign currency rating from 'BB-' to 'B+' on prospects of credit metrics being weaker than previous expectations due to COVID-19 related disruptions and the consequent slowdown.

The negative outlook reflects risks of further weakening in Tata Steel's credit profile if the effect of economic conditions and lower commodity prices are more prolonged than current expectations.

"Even before recent developments, Tata Steel's earnings in the first nine months of fiscal 2020 had underperformed our expectations. However, meaningful price hikes between December 2019 and March 2020, together with a seasonally stronger January–March quarter meant there

Topics : Coronavirus steel Tata Steel S&P global Ratings

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