Mumbai: Fitch has reaffirmed the long-term foreign currency issuer default rating and senior unsecured ratings of Tata Motors-owned Jaguar Land Rover at ‘BB-‘ with positive outlook.
‘BB’ is a speculative grade rating, indicating elevated vulnerability to default risk but business or financial flexibility exists which supports the servicing of financial commitments.
“The ratings reflect our expectation that JLR Automotive Plc will continue to maintain sound profitability and a strong financial profile, despite a period of heavy investment to become a higher-volume premium manufacturer,” Fitch Ratings said in a statement issued from Singapore.
“We expect the launch of new models and replacement of old models in 2016 to support its sales volumes and profitability, even though the British company is facing challenges on several fronts, including weakening sales volumes in its largest market China,” it added.
The report retained its positive outlook on the Tata Motors’ luxury unit.
PTI