Standard & Poor's Ratings Services said that the INR 20 billion debt raised TATA Steel Limited in the domestic bond market by itself does not pressure the company's ratings.

S&P said that as clarified by TATA Steel, proceeds from the issue are entirely for refinancing existing borrowings, including debt raised at the Corus Group Plc level.

It added that in relation to the incremental debt required for funding TATA Steel's ambitious expansion plans in India and potentially softening demand conditions in Europe and North America, medium term pressure persists which may result in overall weakening profitability and cash flows.

S&P has a 'BB' rating with stable outlook on TATA Steel.