Moody's upgrades Tata Steel to Ba1 from Ba2; stable outlook

The stable outlook underscores Moody's view that Tata Steel will continue to strengthen its balance sheet, liquidity profile and financial policies to enhance its credit quality further

Rating agency Moody's Investors Service has upgraded the corporate family rating of Tata Steel Ltd to Ba1 from Ba2. The rating outlook remains stable.

The upgrade to Ba1 reflects Tata Steel's conservative financial policies, which combined with Moody's expectations of strong operating performance throughout fiscal 2022, will contribute to further deleveraging and balance sheet strengthening. 

Moody's expects the company to reduce gross debt by at least a third -- or by around $5.8 billion by March 2022 from March 2020 levels. 

The upgrade reflects the rating agency's expectation of moderate financial leverage and ample interest coverage for Tata Steel