Five Tata Group Firms, Including JLR Get Credit Ratings Boost From S&P Global
The outlook has been revised to stable from watch positive.
S&P Global Ratings upgraded Tata Motors Ltd.’s long-term rating to BBB from BB+ on Tuesday, stating that its move is reflective of the company’s enhanced strategic importance within the Tata group.
The outlook for Tata Motors has been revised to stable from watch-positive. The rating action follows the agency’s reassessment of Tata Motors’ increased strategic cohesiveness and operational linkages with its parent company, the report said.
This upgrade is attributed to the increased commitment and support from Tata Sons, driven by the group’s strengthened strategic integration.
The stable outlook for Tata Motors also reflects expectations of continued strong balance sheet performance and sound operational results.
Additionally, the outlook accounts for Jaguar Land Rover Automotive Plc, a fully-owned subsidiary, which is expected to continue its progress towards electric vehicles, bolstering the group's overall strategic positioning.
TML Holdings Pte Ltd. and ABJA Investment Co. Pte. Ltd., which are wholly owned subsidiaries of Tata Motors and Tata Steel, respectively, were also upgraded.
Shares of Tata Motors closed 0.06% lower at Rs 1087 per share, compared to a 0.51% advance in the NSE Nifty 50. The stock has risen 75.17% year-to-date and 39.79% over the past 12 months.
