Mexican Media Brands
Tata Motors Sinks Deeper into “Junk” Credit Status
S&P Global Ratings has lowered its credit rating for Tata Motors Ltd. for the second time in five months, sinking the Indian carmaker two steps into “junk” status.
#economics
Share
S&P Global Ratings has lowered its credit rating for Tata Motors Ltd. for the second time in five months, sinking the Indian carmaker two steps into “junk” status.
S&P cites worse-than-expected performance of the company’s domestic operations and its U.K.-based Jaguar Land Rover unit. Tata Motors reported a net loss of 10.5 billion rupees ($149 million) for July-September, thanks to slumping JLR sales in most of its major markets.
S&P’s latest downgrade drops the carmaker’s long-term credit rating to BB- from BB. The rating agency also has put Tata Motors on a negative outlook for at least 12 months because of continuing uncertainties about the impact on JLR when the U.K. exits the European Union at the end of March.
Tata tells investors it is launching Project Charge, a very aggressive cost-cutting program for JLR, which has generated most of its corporate profits over the past several years. The 2-3-year program aims to deliver a £2.5 billion ($3.2 billion) improvement in cost, cash and profits within 18 months.
RELATED CONTENT
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
Mazda, CARB and PSA North America: Car Talk
The Center for Automotive Research (CAR) Management Briefing Seminars, an annual event, was held last week in Traverse City, Michigan.
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.