Fitch Ratings affirmed Tata Steel’s (TSL) long-term issuer default rating (IDR) at ‘BB’, while keeping the outlook stable.
Fitch Ratings affirmed Tata Steel’s (TSL) long-term issuer default rating (IDR) at ‘BB’, while keeping the outlook stable. Tata Steel UK Holdings’ (TSUKH) long-term IDR has also been affirmed at ‘B’ with stable outlook.
The agency said that all ratings have been removed from rating watch evolving (RWE), on which they were placed on April 1, 2016.
The affirmation of TSL’s ratings follows confirmation by the European Commission that it has rejected a proposed joint venture (JV) with Thyssenkrupp (BB+/Rating Watch Negative) on antitrust concerns.
Fitch had earlier said an upgrade was probable if TSL had successfully formed the JV, which would have reduced its exposure to structural weaknesses in Europe and improved its business profile, and total adjusted debt-to-EBITDAR leverage was forecast to remain below 4x. Conversely, Fitch could have downgraded the rating if the JV were unsuccessful and leverage remained above 4x.