Steel crisis worsens: Business secretary Sajid Javid rushes back to the UK as and David Cameron convenes emergency summit

 
Jessica Morris
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British Government Ministers Attend The Weekly Cabinet Meeting
Ministers will meet tomorrow to discuss the mounting crisis (Source: Getty)

Sajid Javid is due to fly back to the UK today, after Prime Minister David Cameron convened an emergency steel summit regarding Tata Steel's plans to sell-off its UK assets.

Downing Street said that business secretary, Sajid Javid, will be flying back early from his trade visit to Australia.

It added that prime minister David Cameron is due to hold a meeting with ministers tomorrow to discuss the mounting crisis.

A senior Tata steel executive told the Financial Times earlier today that the company has written down the value of its UK operations to "almost nothing".

"We have taken £2bn of impairment. It is not a valuation exercise, it is a question of reducing an exposure."

Credit ratings agency Standard & Poor's described the Tata's plans to sell-off its UK operations as "positive" for its credit profile.

"We believe the restructuring will help strengthen the financial ratios of Tata Steel," said Standard & Poor's credit analyst Mehul Sukkawala.

"However, this improvement may not be enough to raise the rating, given that the ratios are currently very weak."

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