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S&P downgrades Tata Motors, JLR credit ratings

Press Trust of India  |  New Delhi 

Homegrown auto Tuesday said Global Ratings has downgraded the of the company and its British arm Jaguar Land Rover Automotive Plc.

Tata Motors' issue and senior unsecured notes rating have been 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 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 ongoing uncertainties or exposure to adverse business, financial, or economic conditions that could lead to the obligor's inadequate to meet its financial commitments on the obligation.

Last month, had changed Tata Motors' rating outlook to negative from stable, citing expectations of weak operating performance of JLR.

In the second quarter ended September 30, 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.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, December 04 2018. 20:50 IST