Tata Steel tumbles 4%; S&P revises rating

The company announced that sharp fall in international steel prices due to excessive exports from China and other has triggered a review of Tata Steel’s credit rating by Standard and Poor (“S&P").

Tata Steel stock was down by 4% at Rs. 237.Standard & Poor's Ratings  Services said  that it had lowered its long-term corporate credit rating  on Tata Steel UK Holdings Ltd. (TSUKH) to 'B+' from 'BB-'. The outlook is  stable. At the same time, we affirmed our 'B' short term corporate credit  rating on the U.K.-based company.

S&P lowered the rating on TSUKH following the downgrade of the company's parent  Tata Steel Ltd. (BB-/Stable/--). We assess that TSUKH is a "highly strategic" subsidiary of Tata Steel and expect the parent to continue to support TSUKH. We therefore rate TSUKH two notches above its stand-alone credit profile (SACP).

The company announced that sharp fall in international steel prices due to excessive exports from China and other has triggered a review of Tata Steel’s credit rating by Standard and Poor (“S&P"). The corporate credit rating has been downgraded by 1 notch.

The scrip opened at Rs. 235.6 and has touched a high and low of Rs. 238 and Rs. 231.7 respectively. So far 4208392(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 23989.02 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 411.4 on 23-Jan-2015 and a 52 week low of Rs. 200 on 29-Sep-2015. Last one week high and low of the scrip stood at Rs. 263.9 and Rs. 237.1 respectively.

The promoters holding in the company stood at 31.35 % while Institutions and Non-Institutions held 37.73 % and 28.94 % respectively.

The stock is currently trading above its 200 DMA.