MUMBAI : Moody’s Investor Service has downgraded Tata Motors Ltd’s (TML) corporate family rating (CFR) and the company’s senior unsecured instruments rating to B1 from Ba3.Moody’s said that its outlook on all ratings on TML has been changed to negative from ratings under review.The credit rating agency said that TML’s credit profile is more in line with a B2 rating but expectation of strong financial support from parent Tata Sons Ltd leads to a one-notch uplift of the CFR to B1.
Tata Sons had infused about ₹6,500 crore in Tata Motors in October 2019 taking the parent’s stake to 46.4%.The company’s credit profile was already under pressure due to declining vehicle sales on the back of economic slowdown even prior to the coronavirus.