Covid-19 impact: S&P downgrades Tata Motors ratings, keeps outlook stable

The ratings agency further said it views positively the management's focus on conserving cash amid the changes in operating conditions

S&P Global Ratings has downgraded Tata Motors to more vulnerable to non-payment grade 'B' citing weaker-than-expected credit metrics owing to the disruptions and economic impact from the coronavirus pandemic.

The ratings agency which had earlier rated Tata Motors B+ has, however, kept the outlook on the company stable.

"The impact of COVID-19 on the global automotive market will make a large dent in the recent good progress that JLR's management has made in steering the business back to profitability and improving credit metrics. In turn, this would delay the improvement we had expected in Tata Motors' credit profile," S&P said