Shares of Tata Steel fell over 3 per cent on the Bombay Stock Exchange (BSE) after the company said the rating agency Standard & Poor's downgraded the long-term corporate credit rating by a notch to 'BB-' from 'BB', citing weak financial performance and high debt leverage.
"The sharp fall in international steel prices due to excessive exports from China and other has triggered a review of Tata Steel's credit rating by Standard and Poor. The corporate credit rating has been downgraded by 1 notch," Tata Steel said in a regulatory filing.
Following the development, shares of the company dropped 3.22 per cent to Rs 239.05 a piece on Bombay Stock Exchange.
Shares of the company dipped 3.08 per cent to Rs 239 a piece on National Stock Exchange.
Meanwhile, the broader benchmark BSE Sensex was trading at 24,763.11, down 91 points, or 0.37 per cent, at 11:30 hours.