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Moody's Completes Review of Ratings of Tata Steel UK Holdings Limited

Steel News - Published on Wed, 22 Jan 2020

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Moody's Investors Service has completed a periodic review of the ratings of Tata Steel UK Holdings Limited and other ratings that are associated with the same analytical unit. Tata Steel UK Holdings Limited's (TSUKH) B2 corporate family rating (CFR) reflects the company's (1) large and diversified manufacturing operations across the UK and the Netherlands; and (2) our expectation of ongoing distress support from its sole shareholder, Tata Steel Ltd. (Ba2 stable), resulting in a two-notch uplift in TSUKH's CFR. Such support has been provided in the form of working capital and liquidity support and remains key to TSUKH's operations.

Counterbalancing these strengths, the rating also incorporates TSUKH's (1) exposure to the cyclical steel industry and challenging conditions in key operating markets; (2) volatile profitability due to the lack of raw material integration at TSUKH; and its (3) weak, albeit improving, financial profile.

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Posted By : Rabi Wangkhem on Wed, 22 Jan 2020
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