S&P upgrades credit ratings of Tata Steel

Asia's Tech News Daily

tata sons, s&p, tata steel standard & poor, el ltd, acc

Standard & Poor (S&P) Global has upgraded the credit ratings of steelmaker Tata Steel Ltd on the back of a reassessment and expectation that parent company Tata Sons will come to its rescue in times of financial stress. “Tata Sons will likely provide extraordinary financial support to Tata Steel, if required, in times of financial stress,” the rating agency said in a report on Thursday.

“In our view, Tata Sons and its subsidiaries and associates have become a more cohesive group in recent years.” S&P noted that the credit profile of Tata Steel is strengthened by its importance to Tata Sons Pte Ltd with potential for financial support. “We expect Tata Sons to have a positive influence on the long-term strategy and financial policies of its group entities,” the report said. This comes on the back of S&P’s estimation that Tata Sons will be increasing its ownership in the steel company. Tata Sons is already the largest shareholder in Tata Steel, owning about 34% stake.

“We believe Tata Sons will be open to increasing its ownership to the 40%-50% range seen in other key group entities. Tata Sons has supported previous equity offerings of Tata Steel in full,” it said. S&P Global has raised its issuer credit rating on Tata Steel and its subsidiary ABJA Investment Co Pte Ltd to ‘BBB-’ from ‘BB’. It has also raised the long-term issue rating on the senior unsecured notes issued by ABJA to ‘BBB-’ from ‘BB’ with a stable outlook. The agency has removed the ratings of Tata Steel from ‘CreditWatch with positive implications’ that it had placed on August 20, 2021.

Stock Analysis – Know before investing
Stock score of ACC Ltd moved down by 1 in a month on a 10-point scale.

Subscribe Now

Exclusively for

Stock Analysis

Stock score of ACC Ltd is 9 on a scale of 10. View Stock Analysis »

The stable outlook by S&P reflects an expectation that Tata Steel will continue deleveraging to improve its resilience to downturns over the next 12-18 months. “The rating on Tata Steel is supported by strong deleveraging intent and continued robustness in steel prices,” the S&P report said. The agency’s adjusted debt estimate for Tata Steel will fall to about Rs 60,000 crore (about $8 billion) by fiscal 2023 from about Rs 91,500 crore as of end-March 2021.

A recent spike in coking coal prices is a risk to near-term profitability for Tata Steel and S&P expects an impact in the company’s Ebitda by $2.5-3.0 billion per year. “The company’s captive access to half its coking coal requirements for its Indian operations mitigates the risk to some extent… However, high input prices will likely support steel prices against our base-case expectation of a gradual normalisation in steel prices through fiscal 2023,” the report said.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Gigi de Lana admits feeling pressure in being the leading lady of Gerald Anderson

On November 23, Gigi De Lana admitted feeling pressure in getting paired with Gerald Anderson. During the unveiling event of ABS-CBN and iQiyi’s Filipino Originals, De Lana said she aims ... Read more »

SEC flags eight more investment schemes

© Provided by BusinessWorld THE Securities and Exchange Commission (SEC) has flagged eight more entities in separate advisories for their unregistered investment solicitation programs. These offerings are PH Lazada International ... Read more »

One in three parents plan to work more or avoid time off this Christmas, says charity

© Provided by The Independent Almost a third of working parents are planning to take on extra work or avoid taking time off over the Christmas season to cover the ... Read more »

Suspected shooting at a gym in Sydney's west

© Provided by Daily Mail MailOnline logo One person has been injured in a suspected shooting at a gym in Sydney’s west, police say.  Emergency services were called to World ... Read more »

The 25 Most Unique Gifts From Uncommon Goods Will Make You Feel Like Santa Claus

© Courtesy of Uncommon Goods It can be tough to find creative holiday gifts, especially when you’ve been shopping for the same people every Christmas as far back as you ... Read more »

Covid-19 Omicron variant: Australian state urgently tests arrivals after 2 positive

© Provided by Khaleej Times Australia’s most populous state was urgently testing people entering the country on Sunday, after two arrivals from southern Africa tested positive for Covid-19, as some ... Read more »

Amazon set to open fulfilment centre in Abu Dhabi

© Provided by Khaleej Times Ronaldo Mouchawar, vice-president, Amazon Mena; Russell Grandinetti, senior vice-president, International Consumer, Amazon; Mohammed Ali Al Shorafa, chairman, ADDED; and Mohamed Al Dhaheri, head of Infrastructure ... Read more »

One of Dubai's best dining experiences is back for the four-day weekend

© Motivate Publishing Dinner in the Sand This time of year marks the best weather in the UAE and there’s no better way to enjoy it than dining alfresco. With ... Read more »

UK and Israel join forces to stop Iran developing nuclear weapons

© Majid Asgaripour The reactor building of the Bushehr nuclear power plant, just outside the southern city of Bushehr, in Iran. AP The foreign ministers from the UK and Israel ... Read more »

Race against time to tackle new Omicron variant: EU chief

© Provided by Khaleej Times Ursula von der Leyen. — AFP European Commission chief Ursula von der Leyen said on Sunday the world was in a “race against time” to ... Read more »

UAE President Sheikh Khalifa approves largest legislative reform in country's history

© Motivate Publishing Sheikh Khalifa bin Zayed Al Nahyan human rights A wide-ranging set of new draft laws and amendments covering more than 40 laws have been introduced in the ... Read more »

100% UAE residents receive Covid-19 vaccine: Official clarifies what it means

© Provided by Khaleej Times Photo: File The UAE has administered at least one dose of a Covid-19 vaccine to 100 per cent of all eligible residents. The milestone was ... Read more »

Omicron variant: WHO criticises travel bans on southern African countries

© Provided by Khaleej Times Matshidiso Moeti, World Health Organization (WHO) Regional Director for Africa. — AP The World Health Organisation on Sunday urged countries around the world not to ... Read more »

Ajman Ruler pardons 43 prisoners ahead of UAE's 50th National Day

© Provided by Khaleej Times Photo: File His Highness Sheikh Humaid bin Rashid Al Nuaimi, Supreme Council Member and Ruler of Ajman, has ordered the release of 43 prisoners ahead ... Read more »

How to best manage nationality diversity in boardrooms

© Motivate Publishing boardroom-740×493-1 Diversity may be a buzzword for enterprises across the world and for their boards, but there is still not much diversity in nationalities in enterprise boards. ... Read more »

Exclusive: 'Tears of joy' for UAE girls after advancing to Global T20 World Cup qualifiers

© Provided by Khaleej Times UAE players celebrate with the trophy after booking their berth in the ICC 2023 T20 World Cup global qualifiers. (Supplied photos) In the end, the ... Read more »

Here's how organisations can protect their business from online scams

© Motivate Publishing Cybersecurity How do you see the Middle East cybersecurity landscape? Does digitalisation mean a higher risk of cybercrime? The Middle East is home to some of the ... Read more »

Is virtual reality the new business opportunity?

© Motivate Publishing 210728-HUBBLE-SELL_IN-IN_SITU-BATTERY-V3 How do you see the growth of the virtual reality market in the Middle East? Is it still in its infancy in the region? Virtual Reality ... Read more »

US Fashion designer Virgil Abloh, 41, dies of cancer

© Provided by Khaleej Times Photo Courtesy: Instagram Top US fashion designer Virgil Abloh, the artistic director of Louis Vuitton’s menswear collection, has died of cancer aged 41, the fashion ... Read more »

Omicron: Morocco halts all incoming flights because of new Covid variant

© Provided by Khaleej Times School students and their parents wait to receive their Covid-19 vaccines in Morocco. — AP file Morocco is suspending all incoming air travel from around ... Read more »

Giada De Laurentiis' Self-Care Gift Guide Is Packed with 11 Brilliant Gift Ideas

© Getty Images / Mathew Imaging / Anna Efetova How about a subscription to her favorite wine brand? © Provided by EatingWell Getty Images / Mathew Imaging / Anna Efetova ... Read more »

Covid-19: First image of Omicron variant shows many more mutations than Delta

© Provided by Khaleej Times AP The new Covid variant Omicron has many more mutations than the Delta variant, according to a first “image” of this new variant initially detected ... Read more »

In omicron hot spot, sombre mood as South Africa faces new variant

© Provided by Khaleej Times Shoppers wear face masks on a crowded sidewalk in Pretoria after the Omicron variant of Covid-19 emerged in South Africa. — AP The overcast, drizzly ... Read more »

Britain snubbed as France hosts meeting to discuss migrant crisis

© Provided by Khaleej Times France hosts a meeting of European ministers on Sunday to discuss ways to stop migrants crossing the Channel in dinghies, but without Britain, which has ... Read more »

Surveillance plane to be deployed over Channel to monitor migrants

© Provided by Khaleej Times A group of people thought to be migrants are brought in to Dover, England by the RNLI, following a small boat incident in the English ... Read more »

Abu Dhabi revises operating capacity of indoor, outdoor events and weddings

© Motivate Publishing Abu Dhabi Abu Dhabi has revised the operating capacity of indoor and outdoor events as well as weddings to be held across the emirate. The Abu Dhabi ... Read more »

Dubai: Seven motorists severely injured in accidents over the weekend

© Provided by Khaleej Times Photo: Supplied Seven people were severely injured in seven different accidents over the weekend, the Acting Director of the General Department of Traffic Police at ... Read more »

Covid-19 Omicron variant: Kerala announces 7-day quarantine for international arrivals

© Provided by Khaleej Times International passengers arriving in Kerala will be subject to strict seven-day quarantine, state authorities announced on Saturday. According to Manorama, the new rule comes as ... Read more »

Sebi asks PMS managers for client deal data

Mumbai: The Securities & Exchange Board of India (Sebi) has asked all portfolio management service (PMS) providers, who handle investments of the rich and ultra-rich, to submit information on the ... Read more »

Stocks in the news: IndusInd Bank, Paytm, Vedanta, Tata Steel, ITC and telcos

Nifty futures on the Singapore Exchange traded merely 7.5 points, or 0.04 per cent higher at 17,051 signaling that Dalal Street was headed for a flat start on Monday. Here ... Read more »

Channel migrants: Dutch and UK govts agree migrants need to be returned to first country ahead of meeting UK excluded from

The Dutch and UK governments have agreed migrants need to be returned to the first safe country they arrive in during a meeting ahead of European talks the UK is ... Read more »

Inflation could impede nascent economic recovery

© Provided by The Financial Express Indeed, while much of the organised corporate sector is doing very well, having negotiated the supply disruptions — reflected in the robust tax collections ... Read more »

Nikhil Jr slams hurricane 205*

Nikhi Patil Jr’s unbeaten 205 paved the way for Parsee Gymkhana’s 118-run victory over Bombay Gymkhana in a Group C match of the Automotive Manufacturing-74th Police Invitation Shield at Parsee ... Read more »

Exclusive: Para-Badminton athlete Sukant Kadam happy to start 'Mission Paris 2024' with a gold medal in Uganda

© Provided by DNA You fall. You get up. You dream. But what happens if a dream ends up in a heartbreak? You get up again and make sure that ... Read more »

IND v NZ 1st Test: Shreyas Iyer raises the bar higher

India`s new Test middle-order batsman, Shreyas Iyer has been shouldering responsibilities right from his U-19 days. Hence, his sparkling, gritty performances in both innings of the ongoing Kanpur Test against ... Read more »

I'm not afraid of top players: Lakshya

At 20, India shuttler Lakshya Sen may not have loads of experience, but his talent and hard work have propelled him into emerging as the next big star of Indian ... Read more »

Spectrum sharing across bands on the cards

© Provided by The Financial Express If the sharing guidelines are liberalised and sharing across bands allowed then there can be better utilisation of spectrum. Operators who are sitting on ... Read more »

Matthew McConaughey won't run for Texas governor in 2022

AUSTIN, Texas — Actor Matthew McConaughey isn’t running for Texas governor after months of publicly flirting with the idea of becoming the latest celebrity candidate. The Academy Award winner said ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic