Tata Steel gets strong rating

TATA Steel’s move to offload its long product division in the UK and refinance its existing bank debt will be credit positive, Moody’s Investors Services said yesterday.

“The sale would be credit positive... because it would dispose of loss-making assets, while its refinancing alleviates funding pressure for the next six years,” it said in its credit outlook.

It added a much smaller, more specialised operation would reduce the drag on Tata Steel’s profits.