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Fitch Ratings announced that it had upgraded the ratings of domestic steel company Tata Steel (TSL) to 'BBB-' with a stable outlook. In a statement, the rating agency mentioned that India-based Tata Steel (TSL) Issuer Default Rating (IDR) had been raised from 'BB+' to 'BBB-', with the outlook remaining stable. The agency also upgraded the rating on $ 1 billion notes due July 2024 issued by TSL's subsidiary, ABJA Investment, and guaranteed by TSL, from 'BB+' to 'BBB-'. The decision to upgrade the ratings was based on the revision of the company's stand-alone credit profile (SCP) from 'bb' to 'bb+' due to reduced uncertainty and financial risk from its UK operations. In the UK, TSL planned to replace its blast furnaces with more cost-efficient and environmentally friendly electric arc furnace (EAF)-based steelmaking capacity. This move was expected to enhance the cost competitiveness of the UK operations. Notably, TSL's IDR continued to receive a one-notch uplift due to potential support from the Tata Group. Currently, the UK assets posed a challenge in TSL's portfolio in terms of cost position, reporting an EBITDA loss of around GBP 130 million in the financial year ending March 2023 (FY23). Fitch Ratings clarified that these upgrades were part of the positive changes resulting from TSL's strategic decisions, signalling a more optimistic outlook for the company.