Moody's cuts Tata Chemicals

Moody's Investors Service said it downgraded to Ba2 from Ba1 the corporate family rating of Tata Chemicals Ltd.

The outlook is stable.

The performance of the group as the global economy recovers from the recent downturn has been at the lower end of expectations, Moody's said.

Given rising input prices, the agency said it expects financial performance to remain constrained in the medium term.

The company also is increasing its capital expenditures to replace existing plants and expand, Moody's said. This will likely lead to negative free cash flow generation over the next two years, the agency said.

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