Tata Chemicals Weathers Industry Headwinds: Fitch Affirms 'BB+' Rating

Fitch Ratings has reaffirmed Tata Chemicals Limited's Long-Term Foreign-Currency Issuer Default Rating at 'BB+' with Stable Outlook. This is amid unfavorable market conditions such as the global soda ash market oversupply and poor European demand. Fitch anticipates that Tata Chemicals' earnings and credit measures will deteriorate in FY25 as volumes drop 5% and soda ash prices decline by 20%. But the company's dominant market share, cost-efficient operations, and diversification in end-markets offset risks to its credit profile. Fitch expects a recovery over FY26, led by strengthening market growth and demand from sustainable sectors such as lithium processing and solar panels.

 

Sources: Fitch Ratings, Business Standard, Economic Times