The recent growth posted by Tata owned British brands Jaguar and Land Rover has led to revision of the parent company’s Moody’s rating. Moody's has assigned a Ba3 rating to Tata Motors, up from the earlier B2. Moody’s Investors Service has raised the credit rating of Tata Motors Ltd. for the second time this year amidst robust vehicle sales in the Indian market and faster than anticipated recovery in the operations of Jaguar Land Rover (JLR).
"The rating upgrade reflects the recovery in the operating performance of the Jaguar Land Rover business exceeding our expectations," Alan Greene, an analyst at Moody’s, said in a statement.
The purpose of Moody's ratings is to provide investors with a simple system of gradation by which relative creditworthiness of securities may be noted. Gradations of creditworthiness are indicated by rating symbols, with each symbol representing a group in which the credit characteristics are broadly the same. There are nine symbols, from that used to designate least credit risk to that denoting greatest credit risk: Aaa Aa A Baa Ba B Caa Ca C
