Moody's upgrades outlook on Tata Motors to 'Stable' on sustained recovery

Recovery is from the trough hit Q1 of FY21, is expected to sustain over next 12-18 months, while the firm's credit metrics strengthen as well

Rating agency Moodys has upgraded the outlook on Tata Motors Ltd (TML) from “negative” to “stable” due to continued recovery in the firm's consolidated revenue and profitability.

The recovery is from the trough during the pandemic in the first quarter of the fiscal year ended March 2021. It is expected to sustain over the next 12-18 months, along with strengthening of TML's credit metrics, according to Moody's.

At the same time, Moody's has affirmed TML's B1 corporate family rating (CFR) and B1 senior unsecured ratings.

Today's action follows Moody's affirmation and change in outlook to stable from negative on the