Tata Steel shares fell as much as 6.19 per cent in the morning trade on Wednesday after the company said the rating agency Standard & Poor’s downgraded the long-term corporate credit rating by a notch to ‘BB-‘ from ‘BB’, citing weak financial performance and high debt leverage.
At 11.53 am, shares of Tata Steel were trading 3.40 per cent down at Rs 238.60. The scrip opened at Rs 235.60 and had touched a high and low of Rs 241 and Rs 231.70, respectively, in trade so far. Later, the share price settled 3.36 per cent down at Rs 238.70
In a BSE filing, the company said, “The sharp fall in international steel prices due to excessive exports from China and other has triggered a review of Tata Steel’s credit rating by Standard and Poor (S&P). The corporate credit rating has been downgraded by 1 notch.”
In the past one year, the share price of Tata Steel fell 36.92 per cent to Rs 247 on January 13. Sensex fell 9.37 during the same period.