S&P raises Tata Steel UK, loan

Standard & Poor's said it raised its long-term corporate credit rating on Tata Steel UK Holdings Ltd. to BB- from B+.

The outlook is negative.

The agency also affirmed its B short-term corporate credit rating on the company.

At the same time, S&P raised the issue rating on Tata Steel UK's £3.53 billion bank loan to BB from BB-. All ratings were removed from CreditWatch, where they were placed with positive implications on Nov. 26.

The recovery rating is 2.

"We upgraded Tata Steel UK to BB- from B+ because we view the company as a 'highly strategic' subsidiary of Tata Steel Ltd. under our revised group rating methodology," S&P credit analyst Mehul Sukkawala said in a news release.

"We expect Tata Steel UK to continue to receive strong support from its parent. We have therefore raised the rating on Tata Steel UK to one notch below the bb group credit profile of Tata Steel. We assess Tata Steel UK's stand-alone credit profile (SACP) as b."

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