Research Update: Tata Steel Rating Lowered To 'BB-' Due To Weak Market Conditions; Outlook Negative
- ID: 1782340
- February 2009
- Standard & Poors
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.
On Feb. 5, 2009, Standard & Poor's Ratings Services lowered its corporate credit rating on India-based steelmaker Tata Steel Ltd. to 'BB-' from 'BB'. The outlook is negative. At the same time, we lowered our issue rating on Tata Steel's senior unsecured bank loans to 'BB-' from 'BB'. The rating action reflects the weak global market conditions for steel products given the significant slowdown in the auto and construction industries. This is especially true for Tata Steel's two key markets--the U.K. and India. The company has also been adversely affected by the worsening global economic conditions and the resultant sharp downturn in commodities. To face the downturn, we understand that Tata Steel has undertaken several steps. The company's European business...
Companies mentioned in this report are: Tata Steel Ltd.,Tata Steel UK Holdings Ltd.,Tata Steel Nederland B.V.
Action: Outlook: Negative
SHOW LESS READ MORE >