Fitch Ratings has revised Tata Steel's (TSL) issuer default rating (IDR) outlook from 'stable' to 'negative' while affirming the IDR at 'BBB-.' The agency cited uncertainty regarding the turnaround of TSL's UK operations and potential risks to its forecast that TSL's EBITDA leverage may improve to below 3.0x by the end of the financial year 2025 (FY25).

Changes in the UK government and actions by labor unions to prevent job losses at TSL's UK operations could delay the company's plans to reduce losses through FY25. Despite this, Fitch expects robust growth in TSL's Indian operations and likely EBITDA profits at its Dutch operations in FY25 to offset any losses in the UK.