Moody's Investors Service has upgraded the corporate family rating of Tata Steel Ltd. to Ba1 from Ba2. The rating outlook remains stable.
"The upgrade to Ba1 reflects our view that Tata Steel's better-than-anticipated operating performance this fiscal year and a step-change reduction in gross debt have materially strengthened its credit metrics. We expect the company's leverage -- measured by consolidated debt/EBITDA to decline to 1.5x by March 2022 from 6.5x at March 2020, 3.3x at March 2021 and an estimated 2.1x at June 2021," says Kaustubh Chaubal, a Moody's Vice President and Senior Credit Officer.
"We project the company will continue to generate large and positive free cash flow from operations over the next 12-18 months because of supportive commodity prices, steady product spreads amid likely persisting strong steel demand," adds Chaubal who is also Moody's lead analyst on Tata Steel.
Shares of TATA STEEL LIMITED was last trading in BSE at Rs. 1452.25 as compared to the previous close of Rs. 1463.15. The total number of shares traded during the day was 209838 in over 6833 trades.
The stock hit an intraday high of Rs. 1476.65 and intraday low of 1449. The net turnover during the day was Rs. 306603496.