31 Oct 2016 07:00
October 30, 2016
London Stock Exchange
London
Dear Sirs/ Madam,
Sub: Intimation of Revision in Ratings under the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015
This has reference to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 (the "Regulations").
As part of review by Brickwork Ratings, the agency on October 27, 2016 revised Tata Steel Limited's credit rating to BWR AA from BWR AA+ for NCD and BWR AA- from BWR AA for the perpetual debt, with a negative outlook.
While the Company clarified its position vide its press release dated October 27, 2016, according to Brickwork, the ratings change has resulted due to the uncertainty consequent to the recent change in top management at Holding Company/Group Level which could slow down vital decisions such as cost cutting and deleveraging the Balance sheet concerning the unprofitable UK operations and restructuring of the European business.
In accordance with the said Regulation(s), please find below the details of revision in ratings for Company and its subsidiaries:-
Credit Rating Agency | Type of Instrument | Existing Rating | Revised Rating |
Brickwork Rating | Unsecured NCD | BWR AA+ (Stable) | BWR AA (Negative) |
Unsecured Subordinated Perpetual Securities | BWR AA (Stable) | BWR AA- (Negative) |
The report from the credit rating agency covering the rationale for revision in credit rating is enclosed.
http://www.rns-pdf.londonstockexchange.com/rns/8049N_-2016-10-30.pdf
This is for your information and records.
Tata Steel (TTST)