Tata Steel's Bhushan buy to raise net leverage over next 2-3 years: Fitch

Move to offset benefits to Tata Steel's credit profile from reduced exposure to structural weaknesses in Europe

Tata Steel's acquisition of a controlling stake in debt-laden Bhushan Steel is likely to raise the former's leverage over the next two to three years, Fitch Ratings said on Wednesday.

The move would also offset benefits to Tata Steel's credit profile from reduced exposure to structural weaknesses in Europe and resultant increase in market share in India, said the report.

The Bhushan acquisition will enable Tata to improve its domestic market share, but Fitch estimates it will raise the latter's leverage, in terms of net debt to EBITDA, to 4x over the next two to three years from around 3x at end-March