S&P Global Ratings on Thursday upgraded ratings of five companies of the Tata group including Tata Steel, Tata Motors and Jaguar Land Rover (JLR) reflecting its reassessment of the ongoing influence and the potential for 'extraordinary financial support from the parent, Tata Sons.
Here are the details:
Tata Steel Ltd: Ratings on Tata Steel and it's 100 percent-owned financing subsidiary ABJA Investment Co Pte Ltd has been upgraded to 'BBB-' from 'BB' with a stable outlook.
Tata Motors Ltd: Tata Motors Ltd and its wholly-owned arm TML Holdings Pte Ltd have been upgraded to 'BB-' from 'B' ratings with stable outlook.
Jaguar Land Rover Automotive PLC (JLR): The ratings of the group's British luxury vehicles maker Jaguar Land Rover Automotive PLC (JLR) has been revised upwards to 'B+' from 'B'. The outlook is stable.
Accoridng to the report, the upgrades reflect rating agency's view that the credit profiles of the various Tata Group entities are strengthened by their importance to Tata Sons, with potential for financial support, if required.
“We also expect Tata Sons to have a positive influence on the long-term strategy, financial policies and funding access of its group entities. We regard the credit quality of Tata Sons to be strongly investment grade,” it said.
“We have observed that Tata Sons and its subsidiaries and associates have become a more cohesive group in recent years," the report added.
Citing factors such as Tata Sons' increased ownership in group entities over the last few years and its greater influence on the strategy and financial policies of the group companies, although the Tata Group entities operate independently with professional directors and management, the rating agency said, "We believe the various Tata Group entities will benefit from extraordinary support, if needed, with their importance to Tata Sons."
(With PTI Inputs)
