InvestorQ : What could be the implication of the ratings of Tata Motors being downgraded by Moody’s?
Mary Joseph made post

What could be the implication of the ratings of Tata Motors being downgraded by Moody’s?

Answer
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diksha shah answered.
3 months ago


On Thursday we also saw Fitch downgrading India’s sovereign outlook to negative in line with Moody’s. In addition, Moody’s also downgraded the downgraded the Corporate Family Ratings (CFR) of Tata Motors from Ba3 to B1. Apart from the overall downgrade, the outlook which was placed under review was changed to negative. According to Moody’s, the downgrade reflected the sustained deterioration in the credit profile of Tata Motors and the concern that it will take much longer for the credit profile of Tata Motors to improve to sustainable levels. The pandemic had amplified the pressures on Tata Motors India and also on UK based Jaguar Land Rover. However, the impact of the downgrade is not likely to be very pronounced as the issue is more systemic and hitting companies across the world.