Homegrown auto major Tata Motors Tuesday said S&P Global Ratings has downgraded the credit rating of the company and its British arm Jaguar Land Rover Automotive Plc.
Tata Motors' issue credit rating and senior unsecured notes rating have been been revised to 'BB-/negative watch' from the existing 'BB' due to weaker profitability at JLR, the company said in a regulatory filing.
Similarly, the issuer credit rating and senior unsecured notes rating of JLR have been revised to 'BB-/Negative Watch' from 'BB' due to weaker profitability, it added.
As per S&P, a 'BB' rating indicates an entity's possibility of facing major ongoing uncertainties or exposure to adverse business, financial, or economic conditions that could lead to the obligor's inadequate capacity to meet its financial commitments on the obligation.
Last month, Moody's Investors Service had changed Tata Motors' rating outlook to negative from stable, citing expectations of weak operating performance of JLR.
In the second quarter ended September 30, Tata Motors reported a consolidated net loss of Rs 1,009 crore. JLR's revenue declined 11 per cent to 5.6 billion pounds during the quarter.
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