Singapore, August 20 (ANI): S&P Global Ratings on Friday placed the long-term issuer and issue credit ratings on Tata Steel Ltd, Tata Motors, ABJA Investment Co Pte Ltd, TML Holdings Pte Ltd and Jaguar Land Rover Automotive Plc on creditwatch with positive implications.
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Tata Steel hits Rs 1 lakh crore in market capitalisation
Tata Steel on Tuesday touched Rs 1 trillion (Rs 1 lakh crore) in market capitalisation after the scrip hit a 52-week high of Rs 882.50. The gain pushed the market cap to Rs 1.05 trillion. Tata Steel now becomes the fourth company of the Tata Group to hit Rs 1 trillion in market capitalisation. The other three Tata Group companies in the elite list are TCS, Tata Motors and Titan.
The large cap stock gained more than 20 per cent in the last five days. The scrip has delivered a return of 223 per cent in one year and 34 per cent since the beginning of this year. The recovery in Indian economy led to improvement in steel demand.
S&P raises Tata Steel rating to BB-minus on deleveraging, strong operating momentum ANI | Updated: Apr 06, 2021 11:41 IST
It also raised long-term issue rating on senior unsecured notes issued by ABJA.
It estimated adjusted debt levels for Tata Steel will decline by about 30 per cent by March 2023 from about Rs 1.1 lakh crore in March 2020. About half of this decline is expected to have been delivered in fiscal 2021 (year ended March 2021).
Tata Steel has committed to reducing absolute debt levels by at least one billion dollars (about Rs 7,240 crore) per year from fiscal 2022.
The company s free operating cash flows will be adequate to facilitate this reduction over the next two years, even with revised capital expenditure (capex) estimates of about Rs 9,000 crore per year, up from Rs 5,000 crore to 6,000 crore in fiscal 2021.