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Tata Motors falls as S&P cuts credit rating on JLR woes


(Reuters) - Shares of Ltd fell on Wednesday after cut credit rating for the automaker and its British luxury car unit (JLR), citing weaker-than-expected profitability at

Shares declined as much as 3.2 percent to 170.10 rupees, with more than 4.1 million shares changing hands by 0440 GMT, compared with their 30-day average of 16.2 million shares.

Global Ratings on Tuesday https://cut its rating on issuer credit and senior unsecured notes to 'BB-' from 'BB' for both and The ratings remain on negative watch, reflecting the uncertainties for from a fast-approaching Brexit deadline, said.

The company said in October end it plans to cut costs and improve cash flows under its turnaround plan for JLR, which has been hit hard by trade tensions between and the United States, low demand for diesel in and worries over Brexit.

JLR's higher presence in the UK exposes it to the fallout of a potential "no-deal" Brexit, which could further diminish the likelihood of a turnaround for the company, the rating firm said.

S&P also expects Tata Motors' leverage to deteriorate over the next 12-18 months, given its ongoing cash losses at JLR despite turnaround plans for the unit.

Stock has shed more than 59 percent this year as of Tuesday's close.

(Reporting by in Bengaluru; Editing by Rashmi Aich)

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

First Published: Wed, December 05 2018. 10:26 IST