Fitch assigns Jaguar Land Rover notes BB-

Fitch Ratings said it assigned Jaguar Land Rover Automotive plc’s proposed benchmark senior unsecured notes an expected BB- rating.

The rating is in line with Jaguar Land Rover’s outstanding bonds, with which the notes are expected to rank equally, Fitch said.

“The rating reflects JLR’s weaker business profile relative to peers as risks increase in its markets, particularly in technology requirements as well as its investment in new models and platforms. The prospect of a disorderly Brexit and the specter of US tariffs on car imports from Europe are additional risks. Fitch expects JLR’s negative free cash flow (FCF) will continue until the financial year ending March 2021 (FY21), reflecting its intensive investment program in electric powertrain, model replacement and new chassis architecture,” said the agency in a press release.

Jaguar Land Rover Ltd. and Jaguar Land Rover Holdings Ltd. will guarantee the notes.

Proceeds will be used for general corporate purposes.

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