S&P revises Tata Motors view to negative

S&P said it revised the outlook for Tata Motors Ltd. to negative from stable but affirmed the B ratings on the company and its senior unsecured notes.

Tata’s commercial vehicle sales in India in the first half of fiscal 2021 were about 60% lower than a year earlier due to pandemic-related lockdowns and continuing weak industry demand. Consequently, S&P said it forecasts fiscal 2021 and 2022 sales volumes to be 25%-30% lower than its previous forecasts.

“The negative outlook reflects the risk that the continued impact of the Covid-19 pandemic on the global automotive market could disrupt the recovery we expect in Tata Motors’ volumes and earnings over the next 12-24 months,” S&P said in a press release.

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