Moody’s on Tuesday cut the credit rating for India’s Tata Chemicals, citing the uncertain outlook for soda ash and Tata’s slow progress in improving its finances following its $1bn (€750m) acquisition last year of US soda ash producer General Chemical Industry Products. The credit watchdog downgraded Tata’s corporate family rating to “Ba1,” from “Baa3,” with a negative credit outlook, and would not rule out a further downgrade if the outlook for soda ash deteriorates. A key concern surrounding Tata's credit rating was the mid-to-long term outlook for soda ash pricing and demand, Moody’s said. The slowdown in construction activity and car manufacturing led to weaker demand and prices for glass, one of the key end-uses of soda ash, the analysts said. "Although the pricing for soda ash is expected to remain relatively resilient over the short term, the global economic slowdown has reduced visibility beyond 12 months in terms of demand and prices for the commodity," Moody's said. In addition, long-term soda ash prices could come under pressure due to planned increased capacity in China, the analysts added.