S&P downgrades JLR, Tata Motors credit ratings
- Country:
- India
Homegrown auto major Tata Motors Tuesday said S&P Global Ratings has downgraded the credit rating of the company and its British arm Jaguar Land Rover Automotive Plc.
Tata Motors' issuer credit rating and senior unsecured notes rating have been revised to 'BB-/negative watch' from the existing 'BB' due to weaker profitability at JLR, the company said in a regulatory filing.
Similarly, the issuer credit rating and senior unsecured notes rating of JLR have been revised to 'BB-/Negative Watch' from 'BB' due to weaker profitability, it added.
As per S&P, a 'BB' rating indicates an entity's possibility of facing major ongoing uncertainties or exposure to adverse business, financial, or economic conditions that could lead to the obligor's inadequate capacity to meet its financial commitments on the obligation.
Last month, Moody's Investors Service had changed Tata Motors' rating outlook to negative from stable, citing expectations of the weak operating performance of JLR.
In the second quarter ended September 30, Tata Motors reported a consolidated net loss of Rs 1,009 crore. JLR's revenue declined 11 per cent to 5.6 billion pounds during the quarter.
(With inputs from agencies.)
ALSO READ
Navarro beats Sabalenka in 3 sets, Gauff advances to quarters on her birthday at Indian Wells
Sancho, Reus send Dortmund to Champions League quarterfinals with 2-0 win over PSV Eindhoven
Atletico beats Inter on penalties to reach Champions League quarterfinals. Oblak makes two saves
Tennis-Navarro stuns Sabalenka, Gauff cruises into Indian Wells quarters
Hockey Nationals: Defending champions MP move to quarters