Tata Steel gets BB+ from S&P

Standard & Poor's today assigned BB+ foreign currency and BBB local currency ratings to Tata Iron and Steel Company (Tata Steel) with a stable outlook.

"The rating on Tata Steel reflects its competitive cost position, which is derived from its integrated operations. By being able to procure all of its iron ore and 60% of coal requirements from its captive mines, the company is insulated from the recent sharp rise in raw material prices that has hit many competitors," an official S&P statement, quoting credit analyst Erly Witoyo, said.

"Modernisation of facilities and introduction of new processes has helped the company constantly improve its operating efficiencies, making it one of the lowest cost producer of steel globally," the statement added.