Fitch upgrades Tata Motors to BB+

Fitch Ratings said it upgraded Tata Motors Ltd.’s long-term issuer default rating to BB+ from BB.

The outlook is stable.

Fitch said the upgrade reflects the sustained improvement in Tata Motors’ Indian automotive business over the last two years, supported by growing commercial vehicle volumes, successful new product launches in the passenger vehicle segment, as well as the management's renewed focus on meeting medium-term capital needs in its Indian operations via internally generated funds.

The agency expects the company will continue to grow its India business and capture more market share over the medium-term.

The rating also reflects Tata Motors’ 100% subsidiary Jaguar Land Rover Automotive plc's (BB+/stable) strong credit profile. Jaguar’s EBITDA accounted for close to 85% of Tata Motors’ consolidated EBITDA in the fiscal year ended on March 31, 2016 (FY16).

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