Moody's Investors Service has affirmed the Ba1 corporate family rating (CFR) of Tata Chemicals Limited (TCL). The rating outlook remains stable.

"The rating affirmation reflects the likely recovery in TCL's consolidated revenue and profitability from the trough during the pandemic fallout in the fiscal year ending March 2021. We expect the recovery to sustain over the upcoming 12 to 18 months, strengthening TCL's debt/EBITDA leverage to comfortably below 4.5x and EBITA margin towards 20%," says Kaustubh Chaubal a Moody's Vice President and Senior Credit Officer.

The stable outlook reflects Moody's view that TCL will sustain revenue growth across all its businesses, while maintaining its leading position in the global soda ash industry. In addition, the stable outlook continues to reflect Moody's expectation that TCL will retain its measured approach to growth and that it will prudently deploy its cash surplus in new EBITDA-accretive investments.

TCL's business profile is diversified across products and geographies. Basic chemical products (soda ash, sodium bicarbonate and salt) comprise 75% of the company's consolidated revenue, while specialty products, such as agricultural chemicals, account the balance quarter. Through its various subsidiaries, TCL has manufacturing operations across India, the US, the UK and Kenya.