Tata Group companies put on Creditwatch by S&P
Standard and Poor's (S&P) on Friday placed long-term issuer ratings on Tata Steel ('BB'), Tata Motors ('B'), TML Holdings ('B'), and Jaguar Land Rover Automotive ('B') on Creditwatch with positive implications. “Although the group companies still operate independently under professional directors and management, we observe a greater influence of Tata Sons on the strategy and financial policies of the group,” the rating agency said. S&P could potentially reassess the relationship between these Tata Group entities and the holding company Tata Sons, the potential for extraordinary support from Tata Sons, and therefore the ratings on these group entities. “We regard the credit quality of Tata Sons to be strongly investment grade,” S&P said in a statement. Tata Sons and its subsidiaries, and associates have become more cohesive in recent years. Earlier, the rating agency considered Tata Sons as an unlisted investment holding company for the group. It did not factor in any direct support (from Tata Sons) in assessing the credit profiles of the individual group companies. It will seek to resolve the Creditwatch in the next four to six weeks. It will focus on the strength of the relationship as well as the extent and form of potential financial support that the various entities could receive from Tata Sons, it added.