Fitch Ratings revises Tata Steel's outlook to negative

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Fitch Ratings revises Tata Steel's outlook to negative

Business 19 Jul 2024 02:00 PM IST Steel Orbis

Fitch Ratings has revised the outlook on Indian steelmaker Tata Steel’s issuer default rating (IDR) to ‘negative’, from ‘stable’, and has affirmed the IDR at ‘BBB-’, according to a statement from the rating firm. According to the statement, the negative outlook reflects uncertainty surrounding Tata Steel's UK operations and risks to Fitch's forecast that the company's earnings before interest, tax, depreciation, and amortisation (EBITDA) leverage will fall below 3.0x by the fiscal year 2024-25.

Tata Steel's aim to decrease losses through the current fiscal year may be delayed due to changes in the UK government and labour union measures to prevent job losses at the company's UK facilities.

“We expect robust growth in Indian operations and likely EBITDA profits at Dutch operations in FY 2024-25 may offset any losses at UK operations,” Fitch Ratings said.

Also Read : Liberty Steel’s Last Attempt to Rescue UK Operations Thai Steel Industry Faces Increased Pressure from Foreign Competitors

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Fitch Ratings revises Tata Steel's outlook to negative

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