Business Daily from THE HINDU group of publications
Thursday, Jul 10, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Thursday, Jul 10, 2008 ePaper | Mobile/PDA Version | Audio |
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Corporate
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Credit Rating
Our Bureau Mumbai, July 9 Standard & Poor’s Ratings Services said today it kept its ‘BB’ corporate credit rating on Tata Motors on CreditWatch with negative implications, pending finalisation of the long-term financing plans for funding the company’s purchase of Jaguar and Land Rover from Ford. At the same time, Standard & Poor’s ratings on all Tata Motors’ rated debt remain on CreditWatch with negative implications. The rating on Tata Motors was lowered on April 4, 2008, to ‘BB’, from ‘BB+’, after the announcement of the agreement with Ford Motor Co for the purchase of Jaguar and Land Rover. Tata Motors has paid about $2.3 billion in cash for Jaguar and Land Rover (comprising brands, plants, and intellectual property rights). Ford has contributed $600 million to the Jaguar-Land Rover (JLR) pension plans. “To fund the initial transaction, Tata Motors raised short-term bridge facilities of $3 billion, which it plans to repay through a mix of fresh equity infusion, liquidation of investments, and long-term debt,” said Standard & Poor’s credit analyst Mr Anshukant Taneja. The company has obtained a board approval to raise up to $1.05 billion through a rights issue of equity shares, up to $750 million of optionally convertible preference shares, and $500 million-$600 million through a separate issuance of securities in overseas markets. More Stories on : Credit Rating | HCV/LCV/Tractors | Tata Motors Ltd
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