S&P ups Tata Steel

S&P said it raised its issuer credit rating on Tata Steel Ltd. and its subsidiary ABJA Investment Co. Pte. Ltd. to BB- from B+. The agency also upgraded the long-term issue rating on ABJA’s senior unsecured notes.

“We believe Tata Steel Ltd.’s debt levels will decline materially over the next two years due to strong cash flow and the company’s stated intention to reduce debt,” S&P said in a press release.

In the agency’s base case, S&P said it projects Tata Steel’s adjusted debt to decline by about 30% by March 2023 from the March level of about Rs. 1 trillion, leading its credit metrics to improve steadily.

The outlook is stable.

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