"Changes in the ratings outlook to stable from negative reflect our expectation that the benign operating environment and recovery in the financial performance of Tata Steel UK and Tata Steel over the last few quarters will continue over a longer term, leading to a sustained improvement in its credit metrics," Moody's vice-president and senior analyst Kaustubh Chaubal said in a note today. Tata Steel's consolidated adjusted leverage — as indicated by adjusted debt/reported Ebidta–stood at an estimated 4.7x at end September, down from 8.9x in March 2016. Strong growth prospects in its key operating markets of India, Europe and Southeast Asia — with steel consumption slated to grow, amid capacity removal in China, augur well for Tata Steel, it said.