BANGALORE (Thomson Financial) - ICRA said it has revised the rating assigned
to Tata Motors Ltd.'s (TML) 40 billion Indian rupees fund-based bank programme
to 'LAA' from 'LAA+' after the company entered into a definitive agreement with
Ford Motor Co. for the purchase of Jaguar Land Rover, comprising brands, plants,
and intellectual property rights.
ICRA, the Indian subsidiary of Moody's Investors Service, has also
reaffirmed its 'A1+' rating assigned to TML's 30 billion rupees short-term debt
programme and 20 billion rupees non-fund based programme.
The long-term rating continues to be on negative watch pending further
clarity on the funding structure and details of the acquired business, the
ratings agency said.
Separately, ICRA said it has downgraded the long-term rating assigned to
Tata Motors Finance Ltd.'s (TMFL) 15 billion rupees non convertible debentures
programme to 'LAA' from 'LAA+' while maintaining its negative watch.
TMFL is 100-percent owned by TML and its ratings primarily reflect its
strong parentage and its strategic importance for the parent.
TML, the largest Indian automotive company with market leadership in the CV
(commercial vehicles) segment, has set up TMFL to support its automotive sales
by ensuring availability of financing for a large section of TML's clients at
competitive rates.
TFN.newsdesk@thomson.com
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