S&P keeps Tata Steel on watch

Standard & Poor's said it kept its BBB long-term corporate credit and senior unsecured bank loan ratings on Tata Steel Ltd. on CreditWatch with negative implications, following the announcement of a proposed larger counter-offer to its initial bid to acquire Corus Group plc (long-term corporate credit rating BB/Watch developing , short-term corporate credit rating B/Watch positive).

On Nov. 17, a proposed counter bid for Corus was announced by Companhia Siderurgica Nacional (BB/Watch negative), the agency added, noting that CSN's proposed offer for Corus is 475 pence per share in cash, which is larger than Tata Steel's recommended bid of 455 pence per share.

At this stage, it is unclear whether Tata Steel will revise its initial offer for Corus or amend its proposed financing of the acquisition, S&P said.

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