Standard & Poor's lowered its corporate credit rating on automaker Tata Motors.Mumbai: Standard & Poor's on Friday lowered its corporate credit rating on automaker Tata Motors to 'BB-' from 'BB' due to the slowdown in the auto industry, and placed it on creditwatch with negative implications. At the same time, it has also lowered the issue rating on the company's senior unsecured notes to 'BB-' from 'BB' and also placed it on credit watch with negative implications.
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"We've downgraded Tata Motors and placed the rating on credit watch negative because of the fasterthan-expected deterioration in the automobile market conditions," said Standard & Poor's credit analyst Mehul Sukkawala. Tata Motor's vehicle sales last month fell 30% over last year. This was much higher decline and followed a 20% decline in sales in the previous month.
Also, Jaguar and Land Rover, the two marquee British brands that Tata Motors bought out early this year, has also seen demand slowdown in the key markets of the United States and Europe.
