Cyrus Mistry-Tata Sons Row: Brickwork Ratings downgrades Tata Steel

Mumbai, Oct 31: Citing “heightened management risk” following the ouster of Cyrus Mistry as Chairman of Tata Sons, Brickwork Ratings has revised outlook of Tata Steel to negative while as revised the ratings of its NCDs worth Rs 6,500 crore.

The revised rating however continues to place the company in the ‘high degree of safety’ category with regard to the services to debt.

“Brickwork Ratings revises rating to ‘BWR AA’ (BWR Double A) with Negative Outlook from BWR AA+ (BWR Double A Plus), (Outlook: Stable) for unsecured the Non-Convertible Debenture (NCDs) Issues of Rs 4,000 crore,” said a regulatory filing issued by Tata Steel.

Brickwork Ratings also revises rating to ‘BWR AA-‘ (BWR Double A Minus) Outlook: Negative from BWR AA (Outlook: Stable) for the unsecured subordinated perpetual Debt Issues of Rs 2,500 crore of Tata Steel Ltd, it added.

“Essentially the Rating reflects heightened management risk and the current stage of lack of clarity at group level management that may impact strategic decision making at Tata Steel Ltd,” Brickwork said

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