S&P maintains ratings on Tata Motors under Watch Negative
Standard & Poor's Ratings Services has kept its 'BB' corporate credit rating on Tata Motors Ltd on CreditWatch with negative implications, pending finalisation of the long-term financing plans for funding the company's purchase of Jaguar and Land ...
By ET Online |
SINGAPORE: Standard & Poor's Ratings Services has kept its 'BB' corporate credit rating on Tata Motors Ltd on CreditWatch with negative implications, pending finalisation of the long-term financing plans for funding the company's purchase of Jaguar and Land Rover from Ford Motor Co.
At the same time, Standard & Poor's ratings on all Tata Motors' rated debt remain on CreditWatch with negative implications.
The rating on Tata Motors was lowered on April 4, 2008, to 'BB', from 'BB+', 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 JLR (comprising brands, plants, and intellectual property rights). Ford has contributed $600 million to the pension plans.
���To fund the initial transaction, Tata Motors raised short-term bridge facilities of $3 billion, which it plans to repay through a mix of fresh equity infusion, liquidation of investments, and long-term debt,��� said S&p credit analyst Anshukant Taneja.
The company has obtained a board approval to raise up to $1.05 billion through a rights issue of equity shares, up to $750 million of optionally convertible preference shares, and $500 million-$600 million through a separate issuance of securities in overseas markets.
The CreditWatch status is expected to be resolved as greater clarity and certainty is established on the long-term financing arrangements.
At the same time, Standard & Poor's ratings on all Tata Motors' rated debt remain on CreditWatch with negative implications.
The rating on Tata Motors was lowered on April 4, 2008, to 'BB', from 'BB+', 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 JLR (comprising brands, plants, and intellectual property rights). Ford has contributed $600 million to the pension plans.
���To fund the initial transaction, Tata Motors raised short-term bridge facilities of $3 billion, which it plans to repay through a mix of fresh equity infusion, liquidation of investments, and long-term debt,��� said S&p credit analyst Anshukant Taneja.
The company has obtained a board approval to raise up to $1.05 billion through a rights issue of equity shares, up to $750 million of optionally convertible preference shares, and $500 million-$600 million through a separate issuance of securities in overseas markets.
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The CreditWatch status is expected to be resolved as greater clarity and certainty is established on the long-term financing arrangements.
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