S&P cuts Tata Steel

S&P said it downgraded its long-term foreign-currency rating on Tata Steel and subsidiary ABJA Investment Co. Pte. Ltd., and the issue rating on various dollar-denominated senior unsecured notes ABJA has issued, to B+ from BB-.

The agency said it also cut its rating on Tata Steel UK Holdings Ltd. to B from B+ in line with its parent, Tata Steel.

“The downgrade mainly reflects our expectation that the improvement in Tata Steel's earnings and financial profile, on which the BB- rating was based, is unlikely to materialize in the next 12-18 months. This is mainly due to Covid-19 related disruptions and the consequent economic effects,” S&P said in a press release.

The outlook is negative.

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