Moody's has brought down the rating of Tata Steel Europe from a B2 to a B3. "The downgrade of ratings reflects our expectation of further weakness in the operating environment facing the European steel industry, for which Moody's has a negative outlook," said Alan Greene, a Moody's vice-president and senior credit officer. "The weak industry fundamentals in Europe, driven mainly by the depressed economic environment in the region, are raising significant challenges for TSUKH, and will likely lead to slower recovery in its operating and financial profile," said Greene, adding, "as such, TSUKH's debt coverage metrics are no longer consistent with the previous B2 rating." Fitch Ratings also revised the outlook on India-based Tata Steel Ltd and Tata Steel UK Holdings Ltd to negative from stable.