Key Points
MUMBAI - Moody's Investors Service has affirmed its "Ba3 corporate family rating on Tata Motors, and also maintained a positive outlook, following the automakers move to demerge the commercial and passenger vehicles businesses and list them separately on the exchanges...
"While the demerger would result in TML's remaining operations comprising only CVs, the company's strong foothold with about 40% share in India's growing CV industry and the business' demonstrated ability in generating large free cash flow through industry cycles will support its credit profile," says Kaustubh Chaubal, senior vice president at the global ratings agency...
Even if the entire debt at Tata Motors Indian operations and at intermediate holding company TML Holdings Ltd were to be serviced out of CV-CO's cash flows, its credit profile would remain sufficiently strong to support the positive outlook, Moodys said...
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