Fitch assigns BB+ to Tata Steel’s $1.5 bn overseas bond issue

PTI New Delhi | Updated on November 25, 2017

International rating agency Fitch today assigned ‘BB+’ with a stable outlook rating to $1.5 billion notes issued by Tata Steel Ltd (TSL).

As part of its strategy to mop up capital internationally, Tata Steel had raised $1.5 billion in a dual tranche bond sale on July 25, making it the largest such deal by the Tata group firm.

“Fitch Ratings has assigned Tata Steel Limited’s (TSL; BB+/Stable) $500 mn 4.85 per cent senior unsecured guaranteed notes due 2020 and $1bn 5.95 per cent senior unsecured guaranteed notes due 2024 a final rating of ‘BB+’,” it said in a statement.

The final rating follows the receipt of documents and is in line with the expected rating assigned on July 21, it said.

The notes were issued by Singapore—based ABJA Investments Co Pte Ltd, a wholly owned subsidiary of TSL, and unconditionally and irrevocably guaranteed by India—based TSL.

“The notes are therefore rated at the same level as TSL’s foreign—currency senior unsecured rating of ‘BB+’,” it said.

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Published on July 29, 2014
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