Tata Motors slips 2% on rating downgrade by S&P

Tata MotorsNSE -2.56 % slipped 2 per cent in early trade on Wednesday after S&P Global Ratings downgraded the credit rating of the company and its British arm Jaguar Land Rover Automotive Plc.

Tata Motors’ issue credit rating and senior unsecured notes rating have been revised to ‘BB-/negative watch’ from existing ‘BB’ due to weaker profitability at JLR, the company said in a regulatory filing.

S&P also expects Tata Motors’ leverage to deteriorate over the next 12-18 months, given its ongoing cash losses at JLR despite turnaround plans for the unit. 

 

 

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