S&P raises Tata Steel rating

Jamshedpur : India-based Tata Steel raised US $2.8 billion through its deleveraging measures in the past seven months. In addition, we expect the company to maintain its significantly improved consolidated operating performance in fiscal 2012.

We are raising the rating on Tata Steel to 'BB' from 'BB-'. We are also raising the issue rating on the company's senior unsecured notes to 'BB' from 'BB-'. At the same time, we are affirming the 'B+' rating on Tata Steel's European subsidiary TSUKH.

The stable outlook on Tata Steel reflects our expectation the that company's operating performance will improve over the next 18-24 months. The stable outlook on TSUKH reflects our expectation of sustained operating performance and parental support from Tata Steel.