July 26 -
-- India-based Tata Steel's operating performance was lower than our expectation, particularly in its European operations.
-- In our view, the company's performance will remain weak over the next 12 months, thus hurting its financial metrics.
-- We are revising the outlook on Tata Steel to negative from stable and affirming the 'BB' long-term corporate credit rating on the company.
-- The negative outlook reflects our expectation of continued poor performance from the company's European subsidiary Tata Steel UK Holdings Ltd.
On July 26, 2012, Standard & Poor's Ratings Services revised the outlook on India-based Tata Steel Ltd. to negative from stable. At the same time, Standard & Poor's affirmed its long-term corporate credit rating at 'BB'. Standard & Poor's also affirmed the 'BB' issue rating on Tata Steel's senior unsecured notes.