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Mumbai, Jan. 5 Credit rating agency ICRA has placed the ratings assigned to Tata Motors on rating watch with negative implications.

The rating watch reflects the likely increase in the business and financial risk profile of Tata Motors, in the event of successful conclusion of Jaguar and Land Rover acquisitions.

This is in the context of Ford announcing focused discussions with Tata group. “ICRA would take further rating action as and when full details of the proposed acquisition are made available. Should the proposed acquisition fall through, the rating watch is likely to be removed, restoring back the stable outlook,” said ICRA’s website.

Tata Motors currently has LAA+ rating outstanding on its Rs 4,000-crore fund-based limits. The rating indicates high credit quality of the rated instrument.

It also has A1+ rating outstanding on its Rs 2,000-crore non-fund-based limits. This is the highest credit quality rating assigned by ICRA in the short term.

Further, the company has a rating outstanding of A1+ for short-term debt programme of Rs 3,000 crore and a rating outstanding of LAA+ for its Rs 450 crore and Rs 250 crore Non-Convertible Debenture programmes.

More Stories on : Credit Rating | Corporate Bonds | Cars | Tata Motors Ltd

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