Moody's lowers Tata Motors view to negative

Moody's Investors Service said it changed the outlook on Tata Motors Ltd.'s corporate family rating to negative from stable.

Moody's also said it has affirmed the corporate family rating and the company's senior unsecured instruments ratings at Ba2.

The negative outlook reflects an expectation that the weak operating performance of Tata Motors' wholly owned subsidiary, Jaguar Land Rover Automotive plc, will likely continue over at least the next 12- to 18-months, the agency said.

This will weigh on Tata's earnings and its rating trajectory, Moody's said.

Over the first half of the fiscal year ending March 2019, Jaguar Land Rover's operating performance further weakened and remained well below expectations, the agency explained.

This has been mainly caused by more difficult market conditions in China and the continued weakness in diesel car sales in Europe and the United Kingdom, Moody's said.

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