Crisil reaffirms rating on Tata Motors
By Our Corporate Bureau | 12 Jan 2005
Mumbai: Credit ratings agency Crisil has reaffirmed the `AA+/Stable/P1+' ratings outstanding on the debt instruments of Tata Motors Ltd.
The rating reaffirmation follows the announcement of the merger of Tata Finance Ltd with Tata Motors.
Tata Motors' current rating is driven by its strong market position in the segments it operates in and an improved financial risk profile, which it is expected to sustain in the medium term.
The proposed merger of Tata Finance is not likely to have a material impact on the credit profile of Tata Motors. Crisil believes that the operational synergies derived from the merger, both on the marketing front as well as on the funding side, will assist the company's asset financing business to enhance its market position.
Crisil has upgraded ratings for Tata Finance following its merger with Tata Motors.