Fitch downgrades Tata Motors to 'B' on Covid-19 impact; outlook negative

Agency says Covid-19 will disrupt firms Indian operations and also impact key auto markets globally that are served through its UK-based arm, Jaguar Land Rover

Rating agency Fitch has downgraded Tata Motors Ltd’s Long-Term Issuer Default Rating (IDR) from “BB-” to 'B' on significantly lower profitability and cash flow expectations over the next few years. The Outlook is negative.
 

The agency said Covid-19 will impact demand and lead to disruption in Tata Motors' Indian operations. Key auto markets globally that are served through its fully owned UK-based subsidiary, Jaguar Land Rover Automotive plc, will also be impacted.
 

“We estimate that Tata Motors' consolidated EBITDA generation will drop by nearly 50 per cent year-on-year in the financial year ending March 2021 (FY21) and will remain below