Tata Motors Ltd.
announced Monday post market hours that CARE Ratings had downgraded the co's long-term rating to AA- from AA.
Pursuant to Regulation 30(6) read with Schedule Ill of SEBI (Listing Obligations and Disclosure Requirements) Regulations , 2015 ("the Regulation"), we would like to inform that based on CARE Ratings Credit Research letter dated August 19, 2019, the credit rating of the Company, has been downgraded, the company stated in a press release.
The rating on the long-term bank facilities of Tata Motors (TML) has been changed to 'AA-/Negative' from 'AA/Stable', however, the rating on short-term bank facility and commercial paper has been reaffirmed at 'A1+'.
The rationale for the revision is the weak outlook on the performance of JLR.
According to CARE, the uncertainties revolving around Brexit, geopolitical risks such as the imposition of tarriffs by the US government on the import of vehicles, slowdown in China, and uncertainties related to diesel power train are expected to keep JLR's sales volume under pressure in the medium term.
Tata Motors Ltd ended at Rs120.75 down by Rs0.45 or 0.37% from its previous closing of Rs121.20 on the BSE.
The scrip opened at Rs121.50 and touched a high and low of Rs122.40 and Rs120 respectively. A total of 2,49,60,490 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs37,747.95cr.