Moody's cuts Tata Steel

Moody's Investors Service said it downgraded the corporate family rating of Tata Steel Ltd. to Ba2 from Ba1. The rating remains on review for possible further downgrade.

The action reflects the deteriorating operating performance of the company, as a result of the dramatic reversal apparent in steel industry dynamics following, in turn, a sharp fall in demand and prices, Moody's said.

The weakening in Tata Steel's operating performance has impacted its financial strength, the agency said, and its credit metrics are expected to deteriorate beyond the comfort levels anticipated at the time of the completion of its acquisition of Corus in 2007.

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