Moody's rates Tata loans Ba3

Moody's Investors Service said it assigned Tata Steel U.K. Ltd. a provisional Ba3 corporate family rating to the group's new holding company. Moody's also assigned provisional Ba3 (LGD3, 49%) ratings to the signed £3.7 billion senior secured guaranteed bank facilities to be raised by Tata and its subsidiaries.

Moody's said it issued the ratings following the acquisition of the group by Tata Steel Ltd., which is rated Ba1.

Proceeds from the term loan and loan note guarantees will help finance the acquisition of Corus and refinance Corus's existing debt.

The Ba3 corporate family rating reflects the group's strong position in construction, automotive and packaging market sectors in Europe and its opportunities to further improve the cost position of the U.K. group, Moody's said.

After the refinancing this year, the issuer's adjusted gross leverage is expected to be about 4 times, the agency said. The rating action ends the review that began Oct. 23, 2005 after the company announced its acquisition of Corus.

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