This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
Tata Motors Upgraded to Ba1; JLR Upgraded to Ba2 by Moody’s
August 8, 2024
Tata Motors was upgraded by two notches from Ba3 to Ba1 by Moody’s. The upgrade follows its sustained track record in achieving revenue growth, improving profitability and reducing debt using its large free cash flows. The company’s leverage i.e., adjusted debt/EBITDA, declined to 1.8x as of March 2024 from 3.9x a year earlier and is projected by Moody’s to remain at 1.3x-1.5x over the next two fiscal years. Tata Motors is in the process of demerging its CV operations into a separate listed company with mirror shareholding. Moody’s has a positive outlook on the entity due to the company’s steady focus on strategic growth priorities while maintaining a balanced financial policy.
Tata Motors’s subsidiary Jaguar Land Rover was also upgraded by a notch from Ba3 to Ba2 by Moody’s. The upgrade was on the back of strong operating results delivered by the company in the quarter ended June 2024. The company recorded a 5% YoY revenue growth with its EBITDA margin reaching an all time high level of 7%. The leverage of the company has rapidly decreased with its debt/EBITDA down to 1.5x in the 12 months to June 2024 from 3.8x at the end of financial year 2023 and 5.3x in 2022.
Dollar bonds of Tata Motors were trading stable with its 5.875% 2025s at 99.8, yielding 6.15%
Go back to Latest bond Market News
Related Posts:
Tata Motors Reports Loss on JLR Writedowns
May 19, 2021
HPCL-Mittal Energy Upgraded to Ba1 by Moody’s
July 15, 2024
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.