Moody’s Investors Service on Thursday downgraded the corporate family rating (CFR) of Tata Motors (TML) and Jaguar Land Rover Automotive (JLR).
The ratings agency downgraded the CFR of TML and the company’s senior unsecured instruments rating has been downgraded to Ba3 from Ba2 and stated that the outlook remains negative
It also dowgraded the CFR of JLR to B1 from Ba3 and the probability of default rating (PDR) to B1-PD from Ba3-PD. Concurrently, Moody’s has also downgraded the instrument ratings on the bonds to B1 from Ba3 and stated that the outlook remains negative.
Though TML saw its first profit for FY19 in the March quarter, on account of a Rs 1,108.86 crore consolidated net profit, the ongoing stress in China for its cash cow JLR meant the amount was almost half of what it was a year ago.—FE