Tata Motors hopeful of better rating by agencies

Written by Agencies | New Delhi, March 29: | Updated: Mar 29 2008, 22:22pm hrs
Tata Motors said that ratings given to it by agencies would be reviewed in the next few months as its refinancing plan is put into action.

The response has come after rating agency Crisil yesterday downgraded ratings on the auto major's cash credit facilities from 'AA+' to 'AA-/stable' and removed them from 'Rating Watch with Negative Implications'.

Tata Motors on March 26 announced a definitive agreement with US carmaker Ford to buy its British luxury car brands Jaguar and Land Rover for 2.3 billion dollars, to be financed through a mixture of debt and equity.

"As our refinancing plan envisaged is put into action in the next few months, we are confident that the ratings will be reviewed," Tata Motors spokesperson said in a statement.

"It is natural that in a major acquisition and funding programme, rating agencies would review the position at this point of time. We believe that the AA- rating with a stable outlook reflects the confidence in the company and its future plans," the spokesperson said.