Moodys upgrades ratings of Tata Group firms

Moodys upgrades ratings of Tata Group firms
Moody's Investors Service has upgraded ratings of half a dozen Tata Group firms, including TCS and Tata Motors, on account of Tata Sons' track record in providing timely support to these firms, said the media report.

The agency upgraded corporate family ratings of Tata Motors to Ba2/Stable from Ba3/Stable, Tata Chemicals' to Ba1/Stable from Ba2/Stable, Tata Steel's to Ba2 from Ba3, Tata Steel UK Holdings' to B2 from B3, Tata Power's to Ba3/Stable from B1/Negative and affirmed Tata Consultancy Services' local currency issuer rating at A3/Stable, said the media report.

"The ratings of Jaguar Land Rover Automotive plc and Tata Chemicals North America Inc. have not been affected by today's rating actions," Moody's Investors Service said in a statement.

Upward ratings' revision reflects agency's expectation of parental and systemic support in case of need, which has been exhibited both in the form of extraordinary financial support from Tata Sons, the ultimate parent, and ongoing support through their close association with the Tata brand, Moody's Investors Service said.

"Multiple rating actions are based on the track record of Tata Sons in providing timely support to investee companies and Moody's assessment of its ability to provide future support and on the need to protect the brand reputation of Tata from the consequences of an entity's distress," it said.

Tata Sons' has been injecting money, typically through equity rights issues, into its companies, to fund their growth plans or to bolster any weak balance sheets.

Read more about: moodys, tata group
Story first published: Friday, September 19, 2014, 12:40 [IST]
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