Fitch: No change for Uttam Galva Steel

Fitch Ratings said it believes that Uttam Galva Steel Ltd.'s sale of a material minority stake to ArcelorMittal (rated BBB/F2 with negative view) is unlikely to impact Uttam Galva's A-(ind)/F1(ind) ratings with stable view.

Fitch said it understands that the company would also have operating linkages with ArcelorMittal, including purchases of hot rolled coil, as well as having access to ArcelorMittal's global distribution network, which would potentially benefit its export sales.

If there is a substantial change in the current business plan leading to a debt-led capital expenditure materially impacting the credit metrics of the company, the agency said this could offset the positives brought in by the linkages with ArcelorMittal.

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