MUMBAI: The Jaguar Land Rover business continues to weigh heavily on Tata Motors as the company yet again saw another ratings downgrade due to the weak performance of the subsidiary on Thursday. Moody’s downgraded Tata Motors to Ba3 from Ba2 with “outlook negative”.
“The downgrade reflects the sustained deterioration in TML’s credit profile, with weaker than anticipated credit metrics — led by the weak performance of its 100 per cent owned subsidiary Jaguar Land Rover — and our expectation that it will take longer than we had previously expected for the company’s free cash flows to return to positive territory,” said Kaustubh Chaubal, vice-president and senior credit officer at Moody’s.
Moody’s said the financial year end (March 2019) earnings of the company were significantly weaker than its previous expectations triggering a downgrade.