Singapore, May 14 (ANI): Moody's Investors Service on Friday changed the outlook to stable from negative on Tata Motors Ltd (TML) and affirmed TML's B1 corporate family rating and B1 senior unsecured ratings.
"The rating affirmation and change in outlook to stable reflect the continued recovery in TML's consolidated revenue and profitability from the trough during the pandemic in the first quarter of the fiscal year ending March," said Kaustubh Chaubal, Moody's Vice President and Senior Credit Officer.
"We expect the recovery to sustain over the upcoming 12 to 18 months, strengthening TML's credit metrics, with debt/EBITDA leverage tracking below 4.0x and EBITA margin of 3 to 4 per cent," he said.
Moody's adjusted free cash flows for TML will likely stay negative with its continuous product development and capital expenditure, although the improving profitability and leverage support the view that the imminent risk of a downgrade has now been averted.
The action follows Moody's affirmation and change in outlook to stable from negative on the B1 ratings of TML's wholly-owned UK subsidiary Jaguar Land Rover (JLR) Automotive Plc earlier this week. (ANI)