KOLKATA: Moody’s Investors Service on Monday said it has changed the ratings outlook on Tata Steel Ltd and Tata Steel UK Holdings Limited (TSUKH) to stable from negative. “The change in the ratings outlook to stable from negative reflects our expectation that a recovery in the financial performance of TSUKH and Tata Steel over the last few quarters will continue over a longer term, leading to a sustained improvement in its credit metrics,” said Kaustubh Chaubal, a senior analyst at the New York City headquartered ratings agency.

Moody’s affirmed Tata Steel’s Ba3 corporate family rating (CFR) and TSUKH's B3 CFR while withdrawing the B3-PD probability of default rating for TSUKH. Moody’s said strong growth prospects, in particular in Tata Steel’s key markets of India, Europe and SE Asia, with steel consumption slated to grow amid capacity removals in China, augur well for Tata Steel.