Country's leading rating agency India Ratings & Research (Ind-Ra), on Tuesday maintained a negative outlook on Tata Steel Limited (TSL) while affirming the long-term issuer rating at 'IND AA'. "The negative outlook reflects TSL's higher-than-expected net financial leverage in FY13 (year end March) together with uncertainty regarding deleveraging in the near term," Ind-Ra said in a statement.
The affirmation reflects TSL's low-cost Indian operations and strong liquidity, it added. Besides, the rating agency expects the profitability of the company to remain under pressure in the near term with slower volume growth in Europe and lower growth trajectory in the Indian markets.
TSL's ratings continue to factor in one-notch benefit for its strong operating and strategic linkages with the Tata Group.