S&P Revises Tata Motors Rating; Stock Trades Higher

Posted By:
Subscribe to GoodReturns

Standard & Poor's Ratings Services has revised the rating of Tata Motors, manufacturers of the prestigious Jaguar LandRover range to stable from positive.

At the same time, Standard & Poor's affirmed its 'BB' long-term corporate credit rating and 'BB' long-term issue ratings on the U.S-dollar denominated senior unsecured notes issued by the company.

S&P Revises Tata Motors Rating; Stock Trades Higher
Tata Motors: Quotes, News
BSE 418.95BSE Quote0.15 (0.04%)
NSE 418.05NSE Quote0.9 (0.22%)
"We revised the outlook to stable as the lengthening slowdown in China and continued capital expenditure by Jaguar Land Rover Automotive Plc (JLR), Tata Motors' key wholly owned subsidiary, will result in negative free operating cash flow for Tata Motors. As a result, Tata Motors' ratio of funds from operations (FFO) to debt will be weaker at about 20%, instead of our previous expectation of above 30%," the rating agency said.

Shares of Tata Motors was trading higher by 1.65 per cent despite the revision. The shares have fallen steeply from levels of Rs 606 to Rs 293 on worries of a slowdown in its main market of China.


Read more about: sp, tata motors
Story first published: Wednesday, September 30, 2015, 11:13 [IST]
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'


Get Latest News alerts from Goodreturns