CARE Ratings reaffirms Tata Motors' credit rating across borrowing facilities

Mumbai: Credit rating agency Care Ratings reaffirmed its assessment of Tata Motors across bank facilities and retail borrowing citing the automakers market position and parent Tata Group's backing.

Tata Motors' long and short-term bank facilities were reaffirmed at CARE AA- with a negative outlook and CARE A1+, respectively. Meanwhile non-convertible debentures rating was kept unchanged at CARE AA- with a negative outlook. The company's commercial papers rating was reaffirmed at CARE A1+.

The rating favorably factored the liquidity position of the company which was adequate to weather the subdued demand scenario in the near term, Care Ratings said in a statement.

"TML (Tata Motors Limited) enjoys immense financial flexibility by its virtue of being part of Tata Group and has various fund-raising avenues available with company both at JLR (Jaguar Land Rover) and TML standalone level," read the press note.

TML has a liquidity buffer of Rs.11,043 crore on standalone basis and £2.58 billion at JLR level, CARE said, adding that the funds infusion by Tata Sons to the tune of Rs.6494 crore, of which about Rs.3892 crore were already received in FY20, provided comfort to the ratings.