NEW DELHI: Shares of Tata Motors fell nearly 3 per cent to Rs 154.55 in morning trade on Friday after the rating agency Moody's downgraded the stock.
Moody’s Investors Service on Thursday downgraded Tata Motors’ corporate family rating (
CFR) and senior unsecured instruments rating, citing sustained deterioration in the company's credit profile mainly on account of its British arm
Jaguar Land Rover's weak performances.
Moody's also said the outlook on Tata Motors remains negative. Tata Motor's corporate family rating (CFR) and the company's senior unsecured instruments rating have been downgraded to Ba3 from Ba2, the rating agency said in a statement.
Both Ba3 and Ba2 ratings are considered to have speculative elements and significant
credit risk.
Commenting on the rationale behind the downgrade, Moody's Vice-President and Senior Credit Officer Kaustubh Chaubal said it reflected "the sustained deterioration in TML's credit profile, with weaker-than-anticipated credit metrics -- led by the weak performance of its 100 percent-owned subsidiary Jaguar Land Rover".
Shares of Tata Motors traded 2.29 per cent down at Rs 155.50 on BSE around 9:50 am.
(With inputs from PTI)