Tata Motors: Moodys downgrades JLR rating to Ba3 negative
Major Indian automaker Tata Motors informed about revision of credit rating by Moody’s. The global rating agency has downgraded Tata Motors credit rating.
Moody, downgraded the rating by a notch on the weak performance of its British subsidiary Jaguar Land Rover. The rating firm downgraded the long-term rating considering sales numbers in few of Tata Motors major markets such as China, Europe etc. The rating of under corporate family rating (CFR) and senior unsecured instruments is revised to ‘Ba3’/Negative from ‘Ba2’ of earlier. The rating firm also downgraded JLR bonds to B1/Negative. The rating downgrade reflects the tough environment in the business.
Global wholesales for Jaguar Land Rover were 39,895 vehicles. Jaguar wholesales for the month stood at 13,075 vehicles, while Land Rover wholesales were at 26,820 vehicles. The total global sales in May 2019 which included Jaguar Land Rover (JLR) were at 82,374 units, down by 23 per cent YoY.
Tata Motors is India’s largest automobile company. The company has presence in the UK, South Korea, Thailand, South Africa and Indonesia via its subsidiaries and joint ventures.
On Friday, the stock of Tata Motors closed at Rs. 159.00 per share, down by 0.09 per cent on BSE.