India Ratings and Research (Ind-Ra) has assigned Tata Steel Rs 15 billion commercial paper (CP) programme an 'A1+' rating. This programme is over and above the Rs 25 billion CP already rated by the agency. The CP programmes have been carved out of the working capital bank lines of the company.

The ratings reflect the strong likelihood of a significant improvement in the revenue and profitability of its India operations in FY16 and improved liquidity thereon in European operations due to the refinancing of a major portion of debt.

The ratings continue to be weighed down by weak demand conditions globally leading to large scale imports into India, and the low probability that European operations could report a significant improvement in top-line and profitability in the next two years.

Ind-Ra's rating view on the company is on a consolidated basis. The rating approach factors in a one notch uplift for its strong operational and strategic linkages with the Tata Group.

Shares of the company declined Rs 5.75, or 2.3%, to trade at Rs 244.15. The total volume of shares traded was 388,567 at the BSE (10.12 a.m., Thursday).