Tata Motors Passenger Vehicles Ltd.

Credit rating agency, CARE has upgraded the ratings assigned to long-term non convertible debenture (NCD) issue of Tata Motors. The agency has upgraded the assigned rating from ‘AA-’ to ‘AA’ amounting Rs 1,100 crore.

The rating continues to derive strength from the long and established track record of the company and its status as the largest Indian automobile Original Equipment Manufacturer with a well diversified product portfolio across categories, widespread geographical presence aided by a strong sales and distribution network, strong Research & Development initiatives backed by competent engineering capabilities, favourable market image coupled with dominant market position in domestic Commercial Vehicle segment and the strategic importance in the Tata group.

However, the rating strengths are tempered by high gearing, though improving, on consolidated level, increasing competition in the passenger car segment and inherent cyclical nature of the automobile industry.