S&P Global Ratings on Tuesday said it has revised its outlook on Tata Steel Ltd. to ‘Positive' from ‘Stable'.
The diminishing prospect of Bhushan Power and Steel Ltd.'s acquisition and the sustained high steel prices in India are the key factors for the revision in outlook for the steelmaker, S&P said in a statement.
“The positive outlook reflects our view that stable prices and improvements in earnings, combined with our expectation that the acquisition of BPSL would not happen, are likely to improve Tata Steel's credit ratios in the next 12 months,” it said.
The U.S.-based rating agency also said Tata Steel will continue to support its 100 percent subsidiary Tata Steel U.K. Holdings when needed.
“In line with the rating action on Tata Steel and in view of stable operating performance in Tata Steel U.K. Holdings, we are revising our outlook on Tata Steel U.K. Holdings to ‘Positive',” it said.
Besides, the agency said it expects Tata Steel to successfully divest its European business housed under Tata Steel U.K. Holdings in the next two to three months.
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