Crisil Upgrades Ratings Of Tata Steel, SAIL

Mumbai, Aug 29: | Updated: Aug 30 2003, 05:30am hrs
Crisil has upgraded Tata Steels (Tisco) debenture ratings to AAA from AA+ and that of Steel Authority of India Ltds (SAIL) bond programmes to BBB from BB. It has also upgraded SAILs fixed deposit rating to FA from FB.

Crisil director (corporate ratings) S Venkataraman said that Tiscos rating upgrade is largely driven by benefits accruing to the company from its improving product mix and consistent cost reductions.

He further said that the companys cost-reduction efforts along with the sharp increase in steel prices witnessed over the last year-and-a-half have significantly improved its financial profile.

According to him, SAILs ratings have been upgraded due to the improvement in its financial profile and the expectation that this trend would continue going forward. This improvement is largely due to the sustained buoyancy in steel prices.

Crisil felt that steel prices could decline marginally from their current levels and the expected decline likely due to exhaustion of the Chinese import quota in the next few months and the ongoing capacity additions in China, which would affect Chinese steel imports, a key price driver in recent months.