Suffering a loss of $4 bn in Feb, Jaguar Land Rover is headed downhill

The company's liquidity, all its cash plus a 1.94 billion pound revolving credit facility due in 2022, has deteriorated dramatically in the past two years

Jaguar Land Rover suffered a $4 billion loss this month. Credit investors need to start worrying about what’s coming next. 

The fourth-quarter loss announced by the Tata Motors Ltd.-owned company earlier this month was driven by a 3.1 billion pound ($3.9 billion) impairment charge. Though that’s non-cash, already-elevated yields on some of the U.K. unit’s bonds spiked

It’s not hard to see why. Half of the value of the writedown – some 1.55 billion pounds – comes out of tangible assets, which now won’t generate the value the company previously thought due to weak market conditions in China, technology disruptions,