TATA credit rating cut following purchase of Jaguar/Landrover

[TonyVianoAmbiente]

From today's Financial Times:

"Tata Motors' $2.3bn debt-funded deal for Jaguar and Land Rover has led Standard & Poor’s to cut its credit ratings because of concerns about growing indebtedness.

"The agency left the Indian group on credit watch after cutting its already non-investment grade ratings a notch to “BB” from “BB+”.

"Shares in Tata Motors have fallen 23 per cent since it was confirmed as the frontrunner in the race for the Ford luxury marques in early January. The stock ended Friday down a further 2.39 per cent at Rs613.65.

"Investors are balking at the additional debt required and challenges that Tata Motors faces turning round lossmaking Jaguar and managing the profitable but high-end Land Rover brand."

For the whole article, go to:
Financial Times

 

[crockers]

BB bonds are now classified as sub-prime or "junk" bonds....hmmm any reflection on their cars???

 

[TonyVianoAmbiente]

BB bonds are now classified as sub-prime or "junk" bonds....hmmm any reflection on their cars???

I think it is mostly to do with the fact that most of the money used to purchase Jaguar/Land Rover was debt funding when Tata was already heavily borrowed.

But you may have a point. The Tata range includes a lot of cheap cars at the bottom of the market, plus Jaguar and Land Rover near the top. There is a huge gap in the middle.

 

[crockers]

I think it is mostly to do with the fact that most of the money used to purchase Jaguar/Land Rover was debt funding when Tata was already heavily borrowed.

But you may have a point. The Tata range includes a lot of cheap cars at the bottom of the market, plus Jaguar and Land Rover near the top. There is a huge gap in the middle.

It was meant to be humour............... I think you will find the market is looking forward - more at the level of borrowing that MAY have to be made to turn Jaguar around.....

 

[gary350]

I see the Jaguar knockers are out in force.

gary

 

[TonyVianoAmbiente]

I see the Jaguar knockers are out in force.

No-one is knocking anything, just presenting the facts about Jaguar's new owners as reported in a very highly respected broadsheet newspaper.

I wonder why you feel the need to defend Ford, Jaguar and now Tata at every opportunity. It sure looks like insecurity to me.

 

[gary350]

No-one is knocking anything, just presenting the facts about Jaguar's new owners as reported in a very highly respected broadsheet newspaper.

I wonder why you feel the need to defend Ford, Jaguar and now Tata at every opportunity. It sure looks like insecurity to me.

I just happen not be mercedes brain dead when I choose cars, my last 12 cars have been either BMW or MB its time for a change because no BMW or MB interests me for one reason or another at the moment. The XF I believe is a better all round car than the 2 german makes (I looked at the E, CLS and 5 series and 3 series contvertible), it suits my needs and dont knock it till you try it. Any post on this forum that is about Jaguar or the XF you have knocked it to pieces (just look at your posts) if I do not like a car I might say it once but not over and over and over.

Th XF has been ordered and like many others I am looking forward to it arriving about 1st week in June (I hope) the deal I did with Jaguar was vastly superior than anything MB or BMW could do. I still have my slk 230K and am now driving around in it.

gary

 

[dsolds]

I just happen not be mercedes brain dead when I choose cars, my last 12 cars have been either BMW or MB its time for a change because no BMW or MB interests me for one reason or another at the moment. The XF I believe is a better all round car than the 2 german makes (I looked at the E, CLS and 5 series and 3 series contvertible), it suits my needs and dont knock it till you try it. Any post on this forum that is about Jaguar or the XF you have knocked it to pieces (just look at your posts) if I do not like a car I might say it once but not over and over and over.

Th XF has been ordered and like many others I am looking forward to it arriving about 1st week in June (I hope) the deal I did with Jaguar was vastly superior than anything MB or BMW could do. I still have my slk 230K and am now driving around in it.

gary

I concur. The XF is a fine motor indeed. My wife drives a Jag and I have an E class Estate. But, I have to say that if Jaguar made a decent estate car (not the mondeo-a-like feck) then I might not drive the E. I need an estate car but that doesn't mean Jaguar are crap.

Incidentally, the X type is being dropped with no planned replacement. About time too, just like the dreadful A class. But if the XF ever becomes an estate car I might just dip my toe.

 

[suse]

Had a test drive in the XF (for him), only 2 days after a SLK test drive (for me). It was amazing - really liked the paddle tiptronic gear shift much easier to use than on the MB. It was a dream - think the salesman in the back thought it was a nightmare! My daughter who was sat in the back said he shut his eyes and hung on as I tried to push it to its limit on the lovely country road he wished he hadn't taken us to!

We ordered one straight away and will take delivery in Julyish. Will be glad to see the back of the BMW 525 - what a pain - doesn't hold the bends well.