S&P Global downgrades Tata Motors PV outlook to negative over slow JLR recover

The outlook of Tata Motors Passenger Vehicles Ltd. (Tata Motors PVs) has been revised to negative from stable, citing a slower-than-expected recovery at its wholly owned subsidiary, Jaguar Land Rover Automotive PLC (JLR), according to the S&P Global Ratings.

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However, the agency affirmed its long-term issuer credit rating at ‘BBB’ According to the report, cash flow at Tata Motors PVs is expected to be significantly lower due to a prolonged operational disruption at JLR following a cyber-incident. While JLR has resumed production, the ramp-up to full capacity is likely to be gradual. It stated “The negative outlook reflects our view that a recovery from the operational disruption following a cyber incident at JLR could be prolonged and lead to Tata Motors PVs' credit metrics staying weaker