Fitch Ratings has revised the outlook on Tata Steel's (TSL) issuer default rating (IDR) to 'negative', from 'stable', and affirmed the IDR at 'BBB-'.
The credit rating agency stated that the negative outlook reflects uncertainty surrounding turnaround of the UK operations and risks to our forecast that TSL's EBITDA leverage may improve to below 3.0x by the financial year ending March 2025 (FY25).
The change in the UK government and labour union's actions to save job losses at TSL's UK operations may delay its plan to reduce losses through FY25.
"We expect robust growth in Indian operations and likely EBITDA profits at Dutch operations in FY25, may offset any losses at UK operations, Fitch Ratings said in a statement.
Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 35 million tons per annum.
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The companys consolidated net profit declined 64.59% to Rs 554.56 crore on 6.79% rise in revenue from operations to Rs 554.56 crore in Q4 FY24 over Q4 FY23.
The scrip shed 0.18% to end at Rs 168.70 on the BSE on Friday.
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