S&P Global Ratings has affirmed Tata Steel's issuer credit rating at 'BBB' with a Stable Outlook on December 24, 2025. The affirmation is based on S&P's assessment that increased volumes and cost-reduction measures are expected to counterbalance the impact of recent growth projects on the company's leverage metrics. Despite planned expansions, including a 4.8 million tonne capacity expansion at Neelachal Ispat Nigam Ltd. (NINL) requiring an outlay of ₹400 billion-₹450 billion over three to four years, and additional downstream capacities, S&P anticipates Tata Steel's adjusted debt to rise to ₹1,100 billion by fiscal 2028. The agency forecasts a 10%-15% reduction in fiscal 2026 EBITDA due to lower steel prices and demand-supply imbalances, projecting Funds from Operations (FFO) to debt at 21% for fiscal 2026. However, earnings are expected to grow significantly from fiscal 2027, driven by a ramp-up at Kalinganagar and new downstream facilities, alongside cost savings from U.K. operations and optimized iron ore sourcing. This is projected to lift FFO to debt to 26%-27% by fiscal 2027. The expansion at NINL is also expected to double Tata Steel's long product output to 10 million tonnes by fiscal year 2030, potentially adding ₹75 billion to consolidated EBITDA. The stable outlook reflects S&P's expectation of a credit metrics recovery over the next 12-18 months, supported by higher Indian output and reduced U.K. losses. The company is expected to fund its growth projects primarily through operating cash flow, leading to an FFO to debt ratio likely improving above 20%.