S&P Global Ratings said on August 20 that it has raised its rating actions on various Tata Group companies with a change in its outlook, aided by expectations of higher support from the group's parent.
Both Tata Motors and its British luxury automaking unit Jaguar Land Rover (JLR) were raised to investment grade BBB, with outlook changed to Stable from Watch Positive, S&P said in a press release. JLR's outlook was changed to Positive from Watch Positive.
Tata Steel was upgraded to BBB from BBB- with outlook changed to Stable from Watch Positive. Tata Power was upgraded to BBB- with a Positive outlook, from BB+ with Watch Positive.
“We now consider the above rated entities as strategically important to Tata Sons. The reassessment of group support reflects various factors including the increased strategic cohesiveness and operational linkages within Tata group companies. The stronger strategic cohesiveness, we believe, increases the longer-term commitment of Tata Sons to group entities as well as its incentive to support,” S&P said.
Earlier this month, Ratings agency Moody's upgraded Tata Motors Limited’s (TML) corporate family rating (CFR) by two notches to Ba1 from Ba3 with the outlook remaining positive, due to the automaker’s revenue growth, improving profitability and debt reduction.
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