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S&P cuts Tata Motors credit rating on weak JLR profit, stock falls 3%

Shares of Tata Motors fell as much as 3.15 per cent to Rs 170.15 apiece in early trade on BSE after S&P Global Ratings lowered the credit rating of Tata Motors and JLR

SI Reporter  |  New Delhi 

Tata Motors

Shares of fell as much as 3.15 per cent to Rs 170.15 apiece in early trade on BSE after lowered the credit rating of and its luxury car unit Plc (JLR), citing weaker-than-expected profitability at

On Tuesday, S&P cut its rating on Tata Motors’ issuer credit and senior unsecured notes to ‘BB-’ from ‘BB’. The ratings remain on negative watch, reflecting the uncertainties for from a fast-approaching Brexit deadline, Reuters reported quoting S&P as saying.

Similarly, the issuer credit rating and senior unsecured notes rating of have been revised to 'BB-/Negative Watch' from 'BB' due to weaker profitability, the company said in an exchange filing.

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 weak operating performance of JLR.

Tata Motors
(Source: Company filing to BSE)

At 9:36 am, shares of were trading 1.96 per cent lower at Rs 172.25, as compared to a 0.73 per cent decline in S&P BSE Sensex.

First Published: Wed, December 05 2018. 09:49 IST
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