You are here: Home » Companies » News
Business Standard

Tata Sons' shareholders discord may hit group companies: S&P

The Group companies which S&P rates are Tata Steel UK Holdings Ltd, Tata Steel, Tata Power, Tata Motors, JLR Automotive and TCS

Press Trust of India  |  New Delhi 

The logo of Tata Motors
The logo of Tata Motors

S&P Global Ratings today said the continuing discord between the shareholders of Tata Group holding firm Ltd, has created uncertainty at the board level for group companies and could lead to slow decision-making in these entities.

Expecting the group companies to be all professionally managed, the US-based firm said that it hoped that all these firms will continue to deliver on their business and financial plans as they are "currently unaffected by the developments".



"The continuing discord between the shareholders of Ltd (unrated), the holding company of the India-based Tata group, has created uncertainty at the board level for the group companies," S&P Global Ratings said.

The Group companies which S&P rates are UK Holdings Ltd, Tata Steel, Tata Power, Tata Motors, Automotive PLC and Ltd.

"We will review our assessment if we see greater control of over the board, strategy, and cash flows of individual companies," S&P said.

S&P said it "notes" the sudden removal of Ltd. chairman Cyrus Mistry on November 4, and some independent directors, and allegations and counter-allegations on various matters raise corporate governance issues for various group companies.

"These developments could also affect investor confidence in the group, which is generally well-respected for its corporate practices.

"We believe the timely appointment of a new and well-respected chairman combined with strong independent directors can provide clear direction to individual companies and help restore the group's credibility, and restore investor confidence in the group's corporate governance practices," S&P said.

The recent events at Tata Group could lead to slow decision-making at some of these companies, it noted.

"However, we believe that the companies are all professionally managed and will continue to deliver on their business and financial plans, despite the recent developments," it said.

It also said that the ratings on group companies Ltd., Ltd., and Ltd already factor in the weakness of the European operations, of the Mundra plant, and of the India operations, respectively.

"In our assessment, we consider as an unlisted investment holding company for the promoter group and do not factor in any direct support in assessing the credit profiles of individual ratings.

"We expect the Tata group to continue to manage and run the rated group companies independently with professional management, without intermingling funds," it added.

S&P said that some Tata group companies such as and have high leverage and are pursuing strategic measures for deleveraging; which may probably get delayed.

Unrelated to the recent developments, we have not built the success of some of these initiatives in our assessment of the credit profiles of these companies, it said.

"We also expect to benefit from the good operating performance of Jaguar Land Rover, and to build on its business position and maintain its robust financial performance," S&P said.

RECOMMENDED FOR YOU

Tata Sons' shareholders discord may hit group companies: S&P

The Group companies which S&P rates are Tata Steel UK Holdings Ltd, Tata Steel, Tata Power, Tata Motors, JLR Automotive and TCS

The Group companies which S&P rates are Tata Steel UK Holdings Ltd, Tata Steel, Tata Power, Tata Motors, JLR Automotive and TCS S&P Global Ratings today said the continuing discord between the shareholders of Tata Group holding firm Ltd, has created uncertainty at the board level for group companies and could lead to slow decision-making in these entities.

Expecting the group companies to be all professionally managed, the US-based firm said that it hoped that all these firms will continue to deliver on their business and financial plans as they are "currently unaffected by the developments".

"The continuing discord between the shareholders of Ltd (unrated), the holding company of the India-based Tata group, has created uncertainty at the board level for the group companies," S&P Global Ratings said.

The Group companies which S&P rates are UK Holdings Ltd, Tata Steel, Tata Power, Tata Motors, Automotive PLC and Ltd.

"We will review our assessment if we see greater control of over the board, strategy, and cash flows of individual companies," S&P said.

S&P said it "notes" the sudden removal of Ltd. chairman Cyrus Mistry on November 4, and some independent directors, and allegations and counter-allegations on various matters raise corporate governance issues for various group companies.

"These developments could also affect investor confidence in the group, which is generally well-respected for its corporate practices.

"We believe the timely appointment of a new and well-respected chairman combined with strong independent directors can provide clear direction to individual companies and help restore the group's credibility, and restore investor confidence in the group's corporate governance practices," S&P said.

The recent events at Tata Group could lead to slow decision-making at some of these companies, it noted.

"However, we believe that the companies are all professionally managed and will continue to deliver on their business and financial plans, despite the recent developments," it said.

It also said that the ratings on group companies Ltd., Ltd., and Ltd already factor in the weakness of the European operations, of the Mundra plant, and of the India operations, respectively.

"In our assessment, we consider as an unlisted investment holding company for the promoter group and do not factor in any direct support in assessing the credit profiles of individual ratings.

"We expect the Tata group to continue to manage and run the rated group companies independently with professional management, without intermingling funds," it added.

S&P said that some Tata group companies such as and have high leverage and are pursuing strategic measures for deleveraging; which may probably get delayed.

Unrelated to the recent developments, we have not built the success of some of these initiatives in our assessment of the credit profiles of these companies, it said.

"We also expect to benefit from the good operating performance of Jaguar Land Rover, and to build on its business position and maintain its robust financial performance," S&P said.
image
Business Standard
177 22

Tata Sons' shareholders discord may hit group companies: S&P

The Group companies which S&P rates are Tata Steel UK Holdings Ltd, Tata Steel, Tata Power, Tata Motors, JLR Automotive and TCS

S&P Global Ratings today said the continuing discord between the shareholders of Tata Group holding firm Ltd, has created uncertainty at the board level for group companies and could lead to slow decision-making in these entities.

Expecting the group companies to be all professionally managed, the US-based firm said that it hoped that all these firms will continue to deliver on their business and financial plans as they are "currently unaffected by the developments".

"The continuing discord between the shareholders of Ltd (unrated), the holding company of the India-based Tata group, has created uncertainty at the board level for the group companies," S&P Global Ratings said.

The Group companies which S&P rates are UK Holdings Ltd, Tata Steel, Tata Power, Tata Motors, Automotive PLC and Ltd.

"We will review our assessment if we see greater control of over the board, strategy, and cash flows of individual companies," S&P said.

S&P said it "notes" the sudden removal of Ltd. chairman Cyrus Mistry on November 4, and some independent directors, and allegations and counter-allegations on various matters raise corporate governance issues for various group companies.

"These developments could also affect investor confidence in the group, which is generally well-respected for its corporate practices.

"We believe the timely appointment of a new and well-respected chairman combined with strong independent directors can provide clear direction to individual companies and help restore the group's credibility, and restore investor confidence in the group's corporate governance practices," S&P said.

The recent events at Tata Group could lead to slow decision-making at some of these companies, it noted.

"However, we believe that the companies are all professionally managed and will continue to deliver on their business and financial plans, despite the recent developments," it said.

It also said that the ratings on group companies Ltd., Ltd., and Ltd already factor in the weakness of the European operations, of the Mundra plant, and of the India operations, respectively.

"In our assessment, we consider as an unlisted investment holding company for the promoter group and do not factor in any direct support in assessing the credit profiles of individual ratings.

"We expect the Tata group to continue to manage and run the rated group companies independently with professional management, without intermingling funds," it added.

S&P said that some Tata group companies such as and have high leverage and are pursuing strategic measures for deleveraging; which may probably get delayed.

Unrelated to the recent developments, we have not built the success of some of these initiatives in our assessment of the credit profiles of these companies, it said.

"We also expect to benefit from the good operating performance of Jaguar Land Rover, and to build on its business position and maintain its robust financial performance," S&P said.

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard