Tata Steel share prices jumped over 2% during the early trading hours on Tuesday after international credit rating agency Moody’s upgraded its corporate family rating. 

Shares of Tata Steel reached an intraday high of Rs 130.55, 2.4% higher than the previous closing price on the National Stock Exchange (NSE). At 03:25, the stock was trading 1.33% higher at Rs 129.10. 

Moody’s Investors Service on September 25 revised the company’s corporate family rating outlook from ‘Ba1’ to ‘Baa3’ and upgraded the outlook from ‘positive’ to ‘stable’. 

The rating firm said that Tata Steel’s operations in India are large-scale, globally cost-competitive, and vertically integrated, and the rating upgrade also reflects its resilience amid a challenging industry environment.

Moody’s expects Tata Steel’s profitability to increase even though lower steel prices reduced revenues and that the company’s credit profile will continue strongly due to its solid market position in India.