IndiaCatalog.com
India News
Search Web Directory
News Home
Under surveillance: S&P puts Tata Motors’ long-term rating on ‘CreditWatch’
Posted on 6th November 2018
S&P has placed homegrown auto major Tata Motors’ long-term credit rating on ‘CreditWatch’ with negative implications, reflecting the risk that credit metrics could deteriorate.

The move to place ‘BB’ long-term issuer credit rating on Tata Motors on CreditWatch with negative implication follows interim results which were weaker than expected, dragged down by Jaguar Land Rover, S&P said in a statement.

“We believe the company is likely to miss our expectation for fiscal 2019 unless it takes swift corrective steps,” it added.

Last month, Tata Motors reported a consolidated net loss of Rs 1,009 crore for the second quarter ended September 30, 2018, mainly due to a weak performance by its British arm Jaguar Land Rover (JLR).

Its total revenue from operations rose 3.3% to Rs 72,112.08 crore compared with Rs 69,838.68 crore in the year-ago period.

The company’s British arm, JLR, had reported an 11% decline in revenue to £5.6 billion.

On a standalone basis, the company reported a net profit of `109.14 crore. It had reported a net loss of `283.37 crore in the second quarter of 2017-18.

S&P further said, “The CreditWatch with negative implication is driven by our view that Tata Motors’ adjusted credit metrics may have weakened and the company’s credit profile may no longer support its rating if it fails to post a sharp recovery in the remainder of the year.”

Under CreditWatch, S&P focuses on identifiable events and short-term trends that cause ratings to be placed under special surveillance with negative implications indicating a rating may be lowered.

It further said, “In our view, faster volume growth at Tata Motors’ India operations of 39.5%, albeit on a lower base, and a 10-12% depreciation in the rupee seem to have tempered the impact of decline in JLR volumes.”

The agency said it would “lower the rating by one notch if we assess that the chances of an immediate turnaround in JLR’s performance is unlikely, resulting in Tata Motors’ leverage (funds from operations [FFO]-to-debt ratio) to remain sustainably below 25% over the next 12-18 months.”

S&P said it aimed to resolve the CreditWatch status over the next 90 days, by drafting a revised base case, after having better understanding of Tata Motors’ financial performance and revival plans.

Related Companies: Tata Motors   

Other Latest News
Sensex jumps over 800 points as exit polls suggest NDA's victory
Posted on 20th May 2019
Mumbai: Domestic financial markets cheered exit poll results showed that ruling NDA is likely to will the general Lok Sabha elections on Monday, with the benchmark BSE Sensex skyrocketing over 900 points, and the rupee appreciating 79 paise against the US dollar.

After soaring over 962 in early session, the 30-share index pared some gains and was trading 687.63 points, or 1.81 per cent, higher at 38,618.40. In similar movement, the broader NSE Nifty was trading 203.05 points, or 1.78 per cent, up at 11,610.20.


Rupee opens higher at 69.49 per dollar against the previous close of 70.22
Posted on 20th May 2019
The Indian rupee opened higher by 73 paise at 69.49 per dollar on Monday morning against the previous close 70.22 after the exit polls predicted landslide victory for Modi-led Bharatiya Janata Party (BJP) in Lok Sabha elections 2019. The final results will be announced on May 23. The experts said market gains would be kept in check ahead of the vote counting this week on Thursday. The global tensions and foreign investment flows will also drive the rupee besides major event of elections.

Trade wars: Google pulls Android from Huawei, deals blow to mobile business
Posted on 20th May 2019
Alphabet Inc.’s Google will cut off the supply of hardware and some software services to Huawei Technologies Co. to comply with a Trump administration crackdown on the Chinese telecoms giant, a person familiar with the matter said.

Huawei will only be able to access the public version of Google’s Android mobile operating system, the world’s most popular smartphone software. It won’t be able to offer proprietary apps and services from Maps and search to Gmail, said the person, who requested anonymity speaking about a private matter.


ICICI Prudential Sadvings Fund's 75-80% exposure is in AAA-rated securities
Posted on 20th May 2019
Rohan Maru is the lead manager of the fund and he started managing it in September 2013. Maru has eight years of experience in the daily cash management and liquidity analysis of fixed income funds.

Rahul Goswami continues as co-manager. His role here involves overseeing the investment process and contributing to a macroeconomic view.


Sri Lanka marks a decade of the end of civil war
Posted on 18th May 2019
Sri Lanka, still reeling under the scars of the Easter Sunday bomb blasts, Saturday marked 10 years of the end of the nearly brutal civil war between the government and the LTTE even as it came under criticism for failing to ensure justice for the victims.

The Sri Lankan government on May 18, 2009 killed Liberation Tigers of Tamil Eelam ( LTTE) chief Velupillai Prabhakaran in the coastal village of in Mullaittivu,


» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Cootera.com Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for Under surveillance: S&P puts Tata Motors’ long-term rating on ‘CreditWatch’
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Name*
Comments*
Security Code*
 

Be the first person to write a business review for Under surveillance: S&P puts Tata Motors’ long-term rating on ‘CreditWatch’

Most Read News

Vodafone Idea to do away with all low Arpu subscribers by May end

Infosys to allocate up to 50 mn shares to incentivise staff

Sensex, Nifty start on a positive note amid firm global cues

ICICI-Videocon loan case: Chanda Kochhar, husband appear before ED again

HDFC Bank shortlists three startups inDigital Innovation Summit

More India News

Photo Gallery

Honda CBR 150R(15 Images)Honda CBR 150R
Chevrolet Beat(13 Images) Chevrolet Beat
Ritika Singh(12 Images) Ritika Singh
  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
Home
About us
Link to us
Advertise
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2019 IndiaCatalog.com
    All Rights Reserved
Privacy Statement