S&P boosts Tata Motors

Standard & Poor's said it raised the long-term corporate credit rating on Tata Motors Ltd. to BB from BB- and on the company's senior notes to BB from BB-.

The outlook is positive.

S&P said it upgraded Tata Motors because the company's competitive position and cash flow stability have improved, and the company's business risk profile has been assessed as fair.

Tata Motors' "significant" financial risk profile reflects expectation that the company's ratio of consolidated debt to EBITDA will be about 2.0x to 2.5x in 2013. The view is based on the improved operating performance of Jaguar Land Rover plc (BB-/positive), which is Tata Motors' fully owned U.K. subsidiary.

"Tata Motors' dominant position in the growing Indian commercial vehicle market and JLR's improving competitive position support the company's business risk profile," S&P analyst Abhishek Dangra said in a statement.

The business risk profile improved due to healthy volume growth, particularly in emerging markets, strong demand for the Land Rover brand and the launch of Evoque, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.