S&P Global Ratings revises Tata Steel outlook to stable on earnings rebound

Company's leverage remains high, limiting further rating upside from current 'B+'

S&P Global Ratings has revised outlook for Tata Steel to stable on the expectation that the company’s earnings would strengthen over the next 18 months and its key financial metrics would improve to levels appropriate for the current rating.

The stable outlook also assumes no major growth projects or asset divestments over the period, S&P Global Ratings said in its report today.

“We expect the company to sustain solid earnings over the next 12-18 months following a rebound in the second quarter of fiscal 2021 (year ending March 31, 2021), helped by a benign steel price environment and lower input