Fitch rates Tata Steel debt AAA(ind)

Fitch Ratings said it assigned a national rating of AAA(ind) to Tata Steel Ltd.'s long-term debt aggregating Rs. 58.5 billion, AAA(ind) to its fund-based cash credit limits of Rs. 10.6 billion and non-fund-based limits of Rs. 23.40 billion, as well an F1+(ind) rating to its fund-based limits of Rs. 7.25 billion and non-fund-based limits of Rs. 7.6 billion. Fitch also said it affirmed the company's national issuer rating at AAA(ind), its non-convertible debenture program of Rs.20 billion and its commercial paper/short-term debt rating aggregating Rs .9.75 billion at F1+(ind).

The outlook is stable.

The ratings were previously assigned, but the long-term debt facility includes an additional debt of Rs. 20 billion, the proceeds of which would be used to prepay some of the indebtedness in Tata Steel U.K. Ltd. through the subordinated loan route.

This provides Tata Steel UK Ltd. with greater flexibility for meeting its higher working capital requirements on account of the prevailing increase in iron ore and coal prices, Fitch said.

The consolidated net debt levels remain unchanged, the agency said.

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