After the inclusion of the Corus Group on Tata Group''s
balance sheet, global credit rating agency Moody''s has
downgraded Tata Steel Ltd''s corporate family rating from
investment to speculative.
agency gave a rating of ''Ba1'', against ''Baa2'' earlier,
but kept the outlook for the company as stable.
warned that rating may be downgraded further if Tata Steel
experiences delays or cost-over-runs in execution of various
expansion projects, fall in steel prices or failure in
integrating the two businesses and realising synergies.
Moody''s said it expects Tata
Steel''s ambitious capacity expansion plan to lead to higher
project execution risk over several years and materially
elevate financial leverage, but added that current high
leverage limits the company''s financial strength and flexibility.
Fitch Ratings had assigned a long-term foreign currency
issuer default rating of ''BBB-'' to Tata Steel Ltd with
a stable outlook.