MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said it has
kept all its ratings on India's Tata Motors Ltd., including its 'BB' corporate
credit rating on negative watch, pending finalization of the long-term financing
plans for funding the company's purchase of Jaguar and Land Rover from Ford
Motor Co.
The rating on Tata Motors was lowered to 'BB' from 'BB+' on April 4 after
the announcement of the agreement with Ford Motor for the purchase of Jaguar and
Land Rover.
Tata Motors has paid about $2.3 billion in cash for Jaguar and Land Rover
while Ford has contributed $600 million to the Jaguar-Land Rover pension plans.
S&P said Tata Motors raised short-term bridge facilities of $3 billion to
fund the initial transaction, which it plans to repay through a mix of fresh
equity infusion, liquidation of investments, and long-term debt.
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