Tata Steel rallies over 2% on Moody's rating upgrade

NEW DELHI: Tata Steel Ltd rallied as much as 2.5 per cent in trade on Friday, after Moody's upgraded its rating with a stable outlook, on expectations that Tata Steel UK Holdings - earlier known as Corus - will have less drag on the performance of the group.

At 09:50 a.m.; Tata Steel was trading 2.3 per cent higher at Rs 404.05 and was also one of the top percentage gainer on the Sensex. It hit a low of Rs 401.10 and a high of Rs 404.90 in trade today.

The upgradation of Tata Steel's rating to B1 with stable outlook reflects the group-wide refinancing and the improved liquidity which would support further growth of its highly profitable Indian operations, the rating agency said on Thursday.

"At the same time, pressure to support TSUKH's working capital has abated in the wake of refinancing of its senior facility agreement while better and sustained margins have led to reduced losses at TSUKH," it said in the rationale.