S&P keeps Tata Motors on junk rating

06 Nov 2008 Evaluate

Global credit rating agency Standard & Poor's has affirmed a rating of non-investment grade for auto major Tata Motors while removing it from credit watch. The agency has assigned the company a corporate credit rating of 'BB' (non-investment grade or junk rating) while maintaining that the outlook on the company is negative. 

The negative outlook rating on Tata Motors reflects deteriorating market conditions in the US and Europe, weakening domestic market demand and increase in debt, specially short term. S&P said there was a higher working capital requirement, and slowdown in the vehicle loan securitisation market and capital expenditure, resulting in weakening the company's financial profile.      The agency said the rating is currently supported by the company successfully completing its simultaneous unlinked rights issues aggregating about 800 mn dollars, the proceeds of which are to be used to partly repay a 3 billion dollar bridge loan that Tata Motors had taken for JLR acquisition.

crackcrack

Tata Motors Share Price

993.00 14.20 (1.45%)
28-Mar-2024 16:01 View Price Chart
Peers
Company Name CMP
Tata Motors 993.00
Ashok Leyland 171.15
Force Motors 7243.80
Olectra Greentech 1889.00
Tata Motors - DVR 658.00
View more..
© 2024 The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me ® is a registered trademark of The Alchemists Ark Pvt.Ltd.