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Research Update: Rating On Tata Steel UK Lowered To 'B+' Due To Weak Market Conditions, Debt Rating Lowered And Placed On Watch Negative
Standard & Poors, February 2009
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 long-term corporate credit rating on Tata Steel U.K. Ltd. (TSUK) to 'B+' from 'BB-' and affirmed the 'B' short-term rating. The outlook is negative. At the same time, we lowered our issue rating on TSUK's -3.67 billion senior secured debt to 'BB' from 'BB+' and placed it on CreditWatch with negative implications, pending a review of our recovery analysis, based on our existing recovery rating criteria (see reference below), to consider how the weakened demand environment may affect recovery prospects. The rating action reflects the weak European market conditions for steel products given the significant slowdown in the auto and construction industries. This is especially the case for TSUK's...
Companies mentioned in this report are: Tata Steel UK Holdings Ltd.,Tata Steel Ltd.,Tata Steel Nederland B.V.
Action: Outlook: Negative
Action: On CreditWatch:Negative
Tata Steel UK Holdings Ltd.,Tata Steel Ltd.,Tata Steel Nederland B.V.