 "The logo of ThyssenKrupp is seen at the headquarters of the steel maker and multinational conglomerate in Essen, Germany. (File photo: Rueters)")
Tata Steel Ltd (TSL)'s memorandum of understanding (MoU) with Thyssenkrupp AG to create a 50:50 JV in Europe paves way for the former to reduce exposure to a structurally weaker business, Fitch Ratings said on Friday.
However, Tata Steel's long-term issuer default rating (IDR) of 'BB' remains on Rating Watch Evolving until further clarity on the proposed JV emerges with the signing of definitive agreements, which is expected by March 2018. In addition, Fitch will look out for details on TSL's plans to significantly expand capacity in India and evaluate its impact on TSL's financial metrics and credit profile.
TSL's
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