NEW DELHI, Apr 2: Fitch Ratings has downgraded Tata Steel and its wholly-owned subsidiary Tata Steel UK Holdings from stable rating on the back of decline in profitability. The agency has also placed both the entities on Rating Watch Evolving (RWE), it said in its report. The sharp fall in steel prices and challenging global conditions facing the industry has triggered a review of credit rating by fitch, Tata Steel said in a statement. The RWE reflects uncertainty following Tata Steel’s announcement that it is exploring all options for portfolio restructuring in Europe, including the potential divestment of its UK operations, in part or in whole. Considerable uncertainty remains on timing and how the group and its debt will be structured going forward. Profitability of Tata Steel’s domestic operations has been impacted by weak steel price realisation in nine-months ended December. Its consolidated EBITDA per tonne declined to about Rs 7,400/tonne in the period under review from Rs 11,400 per tonne in FY15, hit by a Rs 7,150 per tonne fall in realisation. (UNI)
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