BANGALORE (Thomson Financial) - Fitch Ratings said it has assigned a
national rating of 'AAA(ind)' to Tata Steel Ltd.'s (TSL) proposed
non-convertible debenture (NCD) issuance of up to 20 billion Indian rupees.
The ratings agency has also affirmed the national issuer rating of TSL at
'AAA(ind)' and its commercial paper/short-term debt rating aggregating 9.75
billion rupees at 'F1+(ind)'. The outlook on the ratings is stable.
The proceeds of the NCD issuance would be used to prepay some of the
indebtedness in Tata Steel UK Ltd. through the subordinated loan route, Fitch
said.
This would provide Tata Steel UK Ltd. with greater flexibility for meeting
its higher working capital requirements on account of the prevailing increase in
iron ore and coal prices, it added.
TFN.newsdesk@thomson.com
tsm
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