Tata Steel can acquire NINL without sacrificing rating headroom: S&P

Tata Steel's debt is expected to continue to decline over the next two years, despite the Rs 12,100 crore deployed for the acquisition of NINL

Rating agency Standard and Poor’s (S&P) said Tata Steel can acquire Neelachal Ispat Nigam Ltd (NINL) without sacrificing rating headroom due to deleveraging over the past 18 months and strong cash flow from high steel prices.

Tata Steel's (BBB-/Stable/--) debt is expected to continue to decline over the next two years, despite the Rs 12,100 crore deployed for the acquisition of state run NINL. However, the pace of deleveraging will be slow in the year ending March 2023.

The company's adjusted debt is estimated to decline by about 5 per cent in FY23 versus a nearly 20 per cent decline expected earlier