Moody's changes Tata Steel's outlook to positive from stable

Moody's Investors Service has changed Tata Steel's outlook to positive from stable.

The outlook change to positive shows the domestic steel giant's track record of delivering a solid operating performance while maintaining conservative financial policies and the likelihood that upward rating pressure will build over the next 12 months if the recent performance and credit metrics improvements are sustained.

''Moody's Investors Service has changed the rating outlook on Tata Steel Ltd (Tata Steel) to positive from stable,'' the global rating agency has said in a statement.

''Tata Steel's well-laid-out capital allocation policy that prioritizes debt reduction over capital expenditure and new investments underscores our positive outlook,'' Kaustubh Chaubal a Moody's Senior Vice President said.

The sizable debt reduction achieved over the last two years, as well as the reduction to come over the remainder of FY'23, will largely improve the company's financial flexibility and resilience and position it for an investment-grade rating, Chaubal said.

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