Covid-19 impact: S&P downgrades Tata Motors outlook to negative from stable

The rating agency cites weaker than expected operating performance as the reason for downgrade

Rating agency  S&P Global Ratings has downgraded the outlook for Tata Motors to negative from stable on account of a slower than expected recovery in company’s operational performance, it said in a statement on Thursday.  

The negative outlook, it said, reflects the risk that the continued impact of the Covid-19 pandemic on the global automotive market could disrupt the recovery we expect in Tata Motors' volumes and earnings over the next 12-24 months.

This is the second report by a global credit rating agency on the Tata Group flagship that raises concern about the company’s performance. On October 16, Moody’s