The Hindu Business Line : Crisil reaffirms rating on Tata Motors

Tata Motors' current rating is driven by its strong market position in the segments it operates in and an improved financial risk profile, which it is expected to sustain in the medium term.

The proposed merger of Tata Finance is not likely to have a material impact on the credit profile of Tata Motors. Crisil believes that the operational synergies derived from the merger, both on the marketing front as well as on the funding side, will assist the company's asset financing business to enhance its market position.

The merger takes the integration of the vehicle finance operations of the Tata Group to its logical conclusion. Crisil expects Tata Motors to maintain its strong business and financial profile in the medium term. The company's healthy cash accruals and its successful FCCB issue provide adequate cushion against any business downturns.

Crisil has upgraded ratings for Tata Finance following its merger with Tata Motors.

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