Moody’s cuts Tata Steel unit

Moody's Investors Service said it placed under review for downgrade Tata Steel Ltd.'s Ba2 corporate family rating.

At the same time, Moody's downgraded Tata Steel's wholly owned subsidiary Tata Steel UK Holdings Ltd.'s corporate family rating to B3 from B2 and placed the corporate family rating under review for further downgrade.

The outlooks were revised to ratings under review from stable.

“The rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, falling oil prices, and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets,” the agency said in a news release.

“The combined credit effects of these developments are unprecedented. The steel sector has been one of the sectors most significantly affected by the shock given its sensitivity to consumer demand and sentiment.”

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