Fitch Ratings assigns 'stable outlook' to Tata Chemicals

The company's rating reflects its high financial leverage. Fitch has also factored the TCL's strong market position in key businesses and improving performance of its UK and Kenyan arms after restructuring, the international rating agency said.

"The stable outlook is underpinned by the steady demand for soda ash globally and for TCL's fertilisers and branded salt in India. Fitch expects EBITDA margin to improve in the next 12 to 18 months and capex to remain modest, which will enable TCL to generate positive free cash flow and deleverage," Fitch said in a statement.

As per the Fitch ratings, the 'BB' rating means speculative and it indicates an elevated vulnerability to default risk, particularly in the event of adverse changes in business or economic conditions over time.

TCL, a Tata group company in which the holding company Tata Sons Limited (TSOL) and other group companies hold an aggregate stake of 30.98 per cent, is the world's second- largest manufacturer of soda ash by output and a leading manufacturer of fertilisers (especially urea) and branded salt in India.