Fitch rates Tata Steel loans BB-

Fitch Ratings said it revised the outlook on Tata Steel Ltd.'s and Tata Steel UK Holdings Ltd.'s long-term foreign-currency issuer default ratings to stable from negative, while affirming the ratings at BB+ and B+, respectively.

The agency also said it revised the outlook on its national long-term rating to stable from negative while affirming the rating at AA(ind).

Fitch also said it assigned a BB- rating to its secured bank facilities aggregating about £3.53 billion with a recovery rating of RR3.

The outlook revisions reflect the improvement in performance of the company operations during the first half of 2011, resulting in greater certainty of the consolidated entity deleveraging below 4x, the agency said.

Fitch said it expects the company's profitability to remain volatile, but the value-added nature of the product profile and greater discipline in use of production capacities partially mitigates the risks.

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