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Monday August 31, 04:00 PM
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TEXT - S&P: No rating impact on Tata Steel, TSUK from weak 1Q
(The following statement was released by the ratings agency)
Standard & Poor's Ratings Services said today that there is no impact on its ratings on Tata Steel Ltd (TATASTL.BO : 544.9 +1.45
). (BB-/Negative/--) and Tata Steel U.K. Ltd. (TSUK) (B+/Negative/B) from their weak operating performance.
Tata Steel reported EBITDA of US$43 million (consolidated), including a loss of US$387 million at TSUK, for the three months ended June 30, 2009.
The weak operating performance and its impact on the company's financial metrics have already been factored into the current ratings and outlook. The recent operating performance is broadly in line with our expectations and is expected to gradually improve with some improvement in market environment, especially in Europe. However, there is still uncertainty on the pace and sustainability of improvement.
The rating on Tata Steel continues to be supported by the favorable business position of its India operations, significant cost-cutting measures, especially at TSUK, the recent US$500 million equity issuance and good liquidity and financial flexibility. The rating on TSUK continues to be supported by its strategic importance to parent Tata Steel.
